State Attorneys General Urge Senate to Reject Crypto Clarity Act

Clarity Act — A bipartisan coalition of 17 state attorneys general has urged the U.S. Senate to reject the proposed Clarity for Payment Stablecoins Act, citing concerns it would preempt state enforcement authority.

The officials argue the legislation, which aims to establish a federal regulatory framework for stablecoins, could restrict their ability to bring securities and commodities cases related to online scams and fraud. They contend that preserving state-level enforcement is crucial for protecting consumers in the rapidly evolving crypto market.

The letter represents a significant pushback from state regulators against a key piece of federal crypto legislation. It highlights the ongoing tension between creating clear national rules and maintaining the enforcement powers that states have frequently used to police the industry.