A bipartisan coalition of 17 state attorneys generals urge Senate to reject Clarity Act

Seventeen state attorneys general from both parties have formally asked the U.S. Senate to reject the Clarity Act, a proposed federal bill concerning cryptocurrency regulation. In their appeal, the AGs expressed worry that provisions in the legislation could curtail state enforcement powers. The coalition's central concern is that the bill might limit their authority to pursue securities and commodities cases that arise from online scams involving digital assets. They cautioned that such a restriction would hamper investigations and prosecutions at the state level that target fraudsters exploiting crypto platforms and products. By urging the Senate to block the measure, the grouped attorneys general are pressing lawmakers to preserve the states' ability to act on consumer-protection and fraud matters tied to virtual currencies. They framed their opposition around protecting the enforcement tools they use to address scams that harm residents. The plea highlights a tension between federal efforts to clarify crypto rules and the interests of state enforcers who handle many fraud and consumer-protection cases. The AGs' request signals organized resistance from state law enforcement to any statutory changes perceived to narrow their prosecutorial reach.