New York Attorney General Leads Coalition Against Clarity Act

New York Attorney General Letitia James is leading an 18-state bipartisan coalition opposing the U.S. Senate's Clarity Act, which aims to establish a federal regulatory framework for the virtual asset market but has raised concerns about restricting state enforcement powers.

According to Bitcoin.com News, the coalition opposes the bill because it could limit states' authority over virtual asset regulation. The group announced its opposition ahead of the U.S. Senate's key procedural vote on the legislation.

The Clarity Act seeks to create a federal regulatory system for the virtual asset market, but debate continues over whether state attorneys general should have enforcement powers alongside the Department of Justice. AP reports that the U.S. Senate is set to hold a major procedural vote this week on the bill, with discussions ongoing about allowing state attorneys general to participate in enforcement alongside the federal government.