Letitia James leads bipartisan coalition of 17 attorneys general against Clarity Act ahead of Senate vote

Eighteen state attorneys general, led by New York’s Letitia James, sent a letter to Senate Banking Committee leaders urging them to reject the Digital Asset Market Clarity Act in its current form. The September 14 letter argues that the legislation would gut state-level enforcement authority at precisely the moment when digital asset fraud is accelerating. The coalition is notably bipartisan. Republican attorneys general from Kansas and Ohio joined the effort alongside their Democratic counterparts. What the coalition is actually worried about The core complaint is straightforward: the Clarity Act, as written, could limit the ability of state attorneys general to bring enforcement actions and antifraud cases against digital asset platforms. State agencies handle the majority of local law enforcement activities in financial markets, and the coalition argues the bill’s vague language around state powers would invite legal challenges from defendants looking to dodge prosecution. James had previously submitted written testimony to the Senate on July 27, 2026, specifically focused on digital asset fraud. This latest letter escalates that effort from a solo warning to a coordinated, mult...