Bipartisan Coalition of 18 State Attorneys General Urges Senate to Vote Down CLARITY Act

New York Attorney General Letitia James is rallying a bipartisan group of attorneys general from 18 states to press Congress to reject the CLARITY Act in a vote expected tomorrow. The coalition includes AGs from Washington, California, Arizona, Massachusetts and New Jersey. In a Sept. 14 letter to Senate Banking Committee Chair Tim Scott and committee member Elizabeth Warren, James lays out the group's objections to the crypto bill. She argues the proposal could enable "predator scammers" and deepen what she calls an epidemic of online crypto fraud. The coalition contends the bill's anti-fraud provisions are too vague and could create loopholes that slow or block state enforcement. James also warns the legislation would weaken states' ability to oversee securities and commodities markets. She says the measure could allow federal positions, including those tied to the U.S. Securities and Exchange Commission, to preempt state securities registration requirements. The letter further argues the bill would undercut state regulators as a frontline defense against fraud, pointing to 330 anti-fraud actions brought by states since 2017. In a post on X, James wrote: "Innovation can't come at the expense of protecting Americans' wallets." The statement arrives after Republicans released an 11th-hour version of the CLARITY Act that adds language giving state AGs a role in enforcing conflict-of-interest bans on federal officials. The coalition's letter signals it remains dissatisfied with those provisions. Tomorrow's Capitol Hill vote will determine the bill's path, a decision closely watched by crypto markets. Bitcoin is hovering around $77,000 ahead of the vote and Wednesday's Federal Reserve interest-rate decision.