What happened: A bipartisan coalition of 18 state attorneys general, led by New York's Letitia James, has called on Congress to revise or reject the CLARITY Act just ahead of a crucial Senate procedural vote. Despite Senate Republicans adding language to give state officials certain enforcement roles, the coalition argues the bill's broader wording would allow the SEC to preempt state registration authorities, potentially limiting how states police crypto firms and bring local fraud cases.
Why it matters: State authorities have brought over 330 crypto anti-fraud actions since 2017. With FBI-recorded crypto losses hitting $11.4 billion in 2025, any legislative clash that muddies enforcement waters could shake up the regulatory landscape and impact how aggressively both state and federal watchdogs crack down on crypto scams.
