Attorneys General From 18 US States Urge Congress to Reject Clarity Act Over Crypto Fraud Concerns
Summary
- Attorneys general from 18 US states said they urged Congress to reject the Clarity Act.
- They said the Clarity Act could weaken state authority to respond to crypto-related fraud.
- They argued that state authority over consumer protection and fraud enforcement should be preserved even as a federal crypto regulatory framework is put in place.
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Attorneys general from 18 US states, including New York Attorney General Letitia James, urged Congress to reject the Clarity Act, a crypto market-structure bill.
Cointelegraph reported on September 14 that James and 17 other state attorneys general said the Clarity Act could weaken states' authority to respond to crypto-related fraud.
They said the measure, if enacted, could restrict states' ability to investigate and crack down on illegal activity in the crypto market.
They also argued that any federal crypto regulatory framework should preserve existing state powers over consumer protection and fraud enforcement.
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