State Attorneys General Tell Senate to Reject Federal Crypto Bill

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A coalition of 18 state attorneys general, led by New York's Letitia James, sent a formal letter to Congress opposing the Digital Asset Market Clarity Act ahead of a procedural Senate vote scheduled for September 15, according to The Block.

The group, described as bipartisan, urged lawmakers to vote against the legislation when the Senate takes up the question of whether to begin formal consideration of the bill.

James argued that the Clarity Act, in its present form, would give fraudsters more room to operate and strip state attorneys general of their existing authority to shield investors and their assets.

What the Attorneys General Are Warning Congress About

James and her counterparts contend that the legislation would weaken the investor protections that state-level regulators currently provide.

That argument carries weight in a state like New York, where the attorney general's office has historically been among the most active in pursuing cryptocurrency fraud cases. Stripping that authority, the letter argues, leaves ordinary investors more exposed.

The coalition spans party lines. Seventeen other attorneys general joined James in signing the letter, making the opposition a notable bipartisan signal to Senate leadership.