New York AG Letitia James Leads Coalition Opposing Clarity Act

New York Attorney General Letitia James has led a coalition of 17 state attorneys general in opposing the Clarity Act. The New York Attorney General's office stated on Wednesday that the coalition sent a letter to Senate Banking Committee Chair Tim Scott and Democratic Whip Elizabeth Warren, warning that the bill could weaken state AGs' ability to address virtual asset fraud and financial crimes.

The coalition urged Congress to amend the legislation to ensure state governments can maintain their role as first responders in investor protection. The Clarity Act is set for its first procedural vote in the Senate on Thursday, following a Republican amendment proposal that has not resolved ongoing debates over state enforcement authority and ethics provisions.