Senate Republicans have added language giving state attorneys general a role in enforcing parts of the CLARITY Act. That has not resolved the larger dispute over whether the crypto market-structure bill would weaken powers states already have under their own laws.
London's trading industry is coming home!
New York Attorney General Letitia James is leading a bipartisan coalition of 18 attorneys general calling on Congress to revise or reject the legislation.
In a letter to Senate Banking Committee leaders, the group argued that the bill could restrict state registration rules and enforcement powers used in crypto fraud cases.
The letter was released one day before the Senate’s scheduled procedural vote on September 15. The vote is on cloture, a procedural step that would allow the Senate to begin considering the bill. It is not a final vote on passage.
Sixty votes are required, meaning Republican senators need support from Democrats or independents even if all 53 Republicans vote in favour.
New State Powers Do Not Answer Existing Concerns
Senate Republicans released an updated draft on Sunday after President Donald Trump accepted much of an ethics proposal developed by Republican Senator Thom Tillis and Democratic Senator Ruben Gallego.
The revised language would give state attorneys general a role in enforcing conflict-of-interest restrictions on public officials. Trump also agreed to a provision allowing them to sue a crypto exchange that lists an asset prohibited under the legislation, the Associated Press reported.
Those provisions would let state attorneys general enforce parts of the federal bill. However, the coalition’s objection is broader: it says the CLARITY Act would allow the Securities and Exchange Commission to preempt state registration authorities.
That could limit how states register crypto firms and bring cases under their own securities laws.
The attorneys general want Congress to preserve state enforcement over tokenised and non-tokenised securities, keep existing registration rules and clarify how federal and state authorities would cooperate.
- US Banks Target CLARITY Act Stablecoin Rewards in Fight Over Deposit Flight
- After CLARITY: How the US Crypto Framework Stacks Up Against MiCA, MAS, and VARA
- Breaking: CLARITY Act Draft Gets Green Light in Senate
States Point to 330 Crypto Cases
James said the bill’s current wording could “muddy the waters” around enforcement and lead to litigation over states’ authority. The coalition cited more than 330 state anti-fraud actions involving the crypto ecosystem since 2017.
The coalition also cited federal loss figures. The FBI recorded $11.4 billion in cryptocurrency-related losses during 2025, up 22% from the previous year.
The Federal Trade Commission reported $1.78 billion, up 25.6%. It is still unclear whether the changes will bring enough votes to advance the CLARITY Act.
Even if cloture succeeds, the Senate would still need to debate amendments and hold a final vote before the bill could move to the next stage.
