Eighteen state attorney generals have urged Congress today to reject the current version of the Digital Asset Market Clarity Act (CLARITY Act). The CLARITY Act seeks to establish a broader federal regulatory framework for digital assets. The timing of this blockade is very crucial because the Act is ready for procedural vote in the US Senate. As per the details available so far, New York Attorney General Letitia James is leading the bipartisan coalition. The coalition has warned that the legislation could weaken states’ ability to fight cryptocurrency fraud and protect investors.
State Attorneys General Raise Crypto Enforcement Concerns
The attorney generals have sent a letter to Senate Banking Committee Chairman Tim Scott and Ranking Member Elizabeth Warren. In the letter, the attorneys have argued that the proposed framework will likely limit state-level enforcement powers. They have also raised concerns that the Securities and Exchange Commission (SEC) could preempt state registration requirements for certain digital assets.
The coalition argued that states have historically played an important role in protecting users from crypto-related scams. According to the group, state authorities have brought more than 330 anti-fraud enforcement actions involving crypto since 2017.
The coalition includes attorneys general from Arizona, California, Connecticut, Delaware, Illinois, Kansas, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, Ohio, Virginia, Washington, Wisconsin, and the District of Columbia.
Rising Crypto Fraud Losses Fuel CLARITY Act Concerns
The attorney generals have pointed to rising cryptocurrency-related fraud losses as another reason for opposing the current legislation. The FBI reported $11.4 billion in cryptocurrency-related losses during 2025. This number is 22% higher from the previous year, 2024. The Federal Trade Commission recorded another $1.78B compromised in related complaints. New York has also seen a significant increase in crypto scam activity.
Due to these worrisome stats, the attorney generals from 18 states have now called on Congress to ensure that any digital asset legislation preserves state enforcement authority. This includes both tokenized and non-tokenized securities. Additionally, they have called for continued cooperation between federal and state regulators.
CLARITY Act Timeline
The House of Representatives passed an earlier version of the legislation in 2025. Later, the Senate Banking Committee advanced the bill in May 2026. Senate Republicans released a revised draft on 13th of September and described it as a final version with more than 100 changes requested by Democrats.
A cloture vote requiring 60 votes to advance the legislation is now scheduled for Tuesday, 15th September 2026. Supporters, including major financial institutions, are of the view that the bill will provide greater regulatory clarity for the digital asset industry.