NY AG James Leads Bipartisan Push Against Crypto Clarity Act

Crypto Clarity Act — New York Attorney General Letitia James is leading a coalition of 17 state attorneys general in a bipartisan effort to oppose the Clarity for Payment Stablecoins Act ahead of a key Senate committee vote.

The group sent a letter to Senate leadership, arguing the proposed legislation would undermine state-level consumer protection laws and regulatory authority. They contend the bill would create a “race to the bottom” by allowing issuers to choose the most lenient regulator, potentially overriding stricter state laws like those in New York.

The Clarity Act, which aims to establish a federal regulatory framework for payment stablecoins, is scheduled for an initial vote in the Senate Banking Committee. The attorneys general warn that the bill’s preemption of state law could leave consumers vulnerable and destabilize markets.

This opposition from a significant bloc of state law enforcement officials represents a major hurdle for the legislation, highlighting the ongoing tension between federal and state approaches to crypto regulation.