Key Highlights
- 18 state attorneys general are urging the Senate to change the CLARITY Act, warning it could weaken state power to fight crypto scams.
- The AGs say unclear parts of the bill could make it harder for states to investigate scammers, bring cases, and recover money for victims.
- The coalition says states have handled more than 330 crypto fraud cases since 2017 and wants their enforcement powers protected before the bill moves forward.
New York Attorney General Letitia James is leading 18 state attorneys general and the District of Columbia in asking the U.S. Senate to change the Digital Asset Market Clarity Act before it moves forward.
The officials warn that the bill, as written, could make it harder for states to investigate crypto scams, take scammers to court and protect investors.
The bipartisan group made its position clear in a letter sent on Monday, September 14, to Senate Banking Committee Chairman Tim Scott and Ranking Member Elizabeth Warren. The attorneys general want the bill to clearly protect the power states already have to enforce securities and commodities laws.
They said unclear parts of the bill could give scammers a chance to fight state enforcement actions in court and delay efforts to hold them responsible.
“We write to urge the Senate to expressly preserve the police powers of the states and ensure that the states remain armed with the tools necessary to protect the American people from predatory scammers,” the officials wrote.
Also Read: US House Panel to Review Two Crypto Tax Bills on Sept. 16
