New York Attorney General Letitia James and a bipartisan coalition of 17 other attorneys general urged Congress on Sept. 14 to reject the Clarity Act, arguing that the crypto market structure
New York Attorney General Letitia James and a bipartisan coalition of 17 other attorneys general urged Congress on Sept. 14 to reject the Clarity Act, arguing that the crypto market structure bill could weaken states’ ability to pursue fraud and protect investors.
The coalition warned that state regulators have often acted as the first line of defense against crypto scams.
Since 2017, states have brought more than 330 crypto-related anti-fraud enforcement actions, according to James’ office.
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“As written, the Clarity Act would embolden scammers and potentially strip attorneys general of our authority to protect our states’ investors and their wallets,” James said.
“Together with my attorney general colleagues, I urge Congress not to pass the Clarity Act.”
The Clarity Act would establish a new federal regulatory framework for cryptocurrencies and clarify oversight between agencies including the Securities and Exchange Commission and Commodity Futures Trading Commission.
The legislation grew out of bipartisan market structure efforts dating back to Sens. Cynthia Lummis and Kirsten Gillibrand’s Responsible Financial Innovation Act in 2022. It advanced from the Senate Banking Committee in May 2026 by a 15-9 vote.
The attorneys general’s opposition comes as supporters make a last-minute effort to secure enough Democratic votes to advance the bill.
In a Monday op-ed, Lummis called the latest text the result of 12 months of negotiations and said President Donald Trump had accepted stronger ethics restrictions, including limits on elected officials issuing digital assets for profit and a commitment to place his own digital assets in a blind trust or divest.
“After a year of intense daily bipartisan negotiations, this bill is ready,” Lummis said separately Monday, arguing that the final text incorporates more than 120 Democratic requests.
The revised bill also gives state attorneys general a role in enforcing its ethics requirements, though James and the coalition argue broader language could still undermine existing state securities and registration powers.
The Senate is scheduled to hold a key procedural vote Tuesday. With full attendance, Republicans would need support from at least seven Democrats to reach the 60-vote threshold required to overcome a filibuster.
