State attorneys general oppose CLARITY Act over federal preemption worry

A bipartisan group of U.S. state attorneys general, led by New York AG Letitia James, is urging Congress to reject the CLARITY Act, the market-structure bill that would create a federal framework for digital assets. The officials said the legislation could restrict their authority to bring securities and commodities cases tied to online scams and limit states' ability to protect investors from fraud.

The opposition adds a state-level counterweight to the bill ahead of its expected Senate vote, which will now test how much the states' concerns weigh against the ethics concessions Trump recently granted to secure key votes.