State Attorneys General Oppose CLARITY Act Ahead of Senate Vote

Led by New York Attorney General Letitia James, the group sent a formal letter to Senate Banking Committee Chair Tim Scott and ranking member Elizabeth Warren on Monday. The officials contend that the legislation, which aims to distribute oversight between the SEC and the Commodity Futures Trading Commission, grants federal regulators excessive power to preempt state-level securities enforcement. James argued that the bill as written would embolden scammers and strip states of their ability to safeguard local investors from digital asset misconduct.

Despite a revised version released Sunday—which includes new provisions for enforcing conflict-of-interest rules for public officials and an 18-month circuit breaker for stablecoin rewards—the attorneys general maintain that their core concerns remain unaddressed. The revisions, while attempting to bridge gaps regarding developer protections and community bank deposit stability, failed to satisfy the coalition. With a procedural vote scheduled for Tuesday, Republicans face a difficult path to the 60-vote threshold required to advance the bill, leaving its future dependent on securing necessary Democratic support.