State AGs Oppose Clarity Act Before Senate Vote
- Letitia James and a coalition of state attorneys general oppose the Digital Asset Market Clarity Act.
- The act could allow the SEC to override state powers in prosecuting crypto fraud cases.
- States have pursued over 330 actions since 2017 to protect families from scams.
- The FBI reported $11.4 billion in cryptocurrency complaint losses in a single year, averaging over $62,000 per victim.
- Republicans need at least seven Democratic votes to break a filibuster on the bill.
State attorneys general argue that the Clarity Act’s provision for federal preemption could hinder their ability to prosecute local crypto fraud effectively, despite offering new national powers. They emphasize the importance of maintaining strong local enforcement to protect consumers from significant financial losses.
