17 state attorneys general oppose CLARITY Act

• New York Attorney General Letitia James has led 17 other attorneys general against the CLARITY Act.
• The officials say the bill could weaken state powers to fight crypto fraud.
• Their opposition comes before a Senate vote requiring 60 votes to advance the bill.

New York Attorney General Letitia James has led 17 other attorneys general in opposing the CLARITY Act.

The bipartisan group has urged senators to reject the bill over concerns about state enforcement powers.

James said the bill could “embolden scammers” and weaken state authority to protect investors and their wallets.

The officials say the bill could let the SEC override parts of state securities regulation.

The revised bill also gives state attorneys general a role in enforcing conflict-of-interest rules for public officials.

It would also let the Treasury secretary suspend stablecoin rewards for 18 months if they trigger major deposit outflows.

The Senate needs 60 votes to advance the bill, while lawmakers remain divided over state powers, stablecoin rewards and ethics rules.