State Attorneys General Urge Senate to Reject CLARITY Act

A bipartisan coalition of 18 state attorneys general is urging the U.S. Senate to reject the Digital Asset Market Clarity Act, also known as the CLARITY Act. In a letter addressed to Senate Committee on Banking co-chairs Tim Scott and Elizabeth Warren, the group argued that the proposed federal regulatory framework for the $2.3 billion cryptocurrency market would limit the ability of individual states to oversee securities and commodities markets.

Letitia James, the New York State Attorney General, led the coalition in warning that ambiguous language in the bill could blunt state enforcement powers. The officials described these powers as a critical weapon against an epidemic of online scams, citing more than 330 state-led anti-fraud actions as evidence of the necessity of state police powers.

The group issued its initial warning on September 14, 2026, one day before a scheduled Senate vote. The Senate is now poised to hold a procedural vote on Tuesday to determine whether to move forward with the legislation.