NY Attorney General Letitia James Leads Coalition to Oppose CLARITY Act

New York Attorney General Letitia James, together with 17 other state attorneys general, has urged Congress to abandon the Digital Asset Market CLARITY Act just hours before a scheduled Senate floor vote.

Why the Coalition Opposes the Bill

The CLARITY Act would create a split oversight framework for digital assets, giving federal agencies new authority while also granting state prosecutors the power to enforce crypto‑ethics rules against federal officials. James and the coalition argue that a specific provision allowing the Securities and Exchange Commission to preempt state registration systems would effectively remove state prosecutors from many commodities‑fraud cases.

Potential Impact on State Fraud Enforcement

State attorneys general contend that accepting the national authority would diminish their ability to pursue ordinary scams that affect everyday Americans. Since 2017, James’ office says state enforcers have initiated more than 330 actions to protect families from cryptocurrency fraud.

The $11.4 Billion Fraud Concern

Federal investigators reported that cryptocurrency‑related complaints resulted in $11.4 billion in losses in 2025, averaging over $62,000 per victim. The coalition links this loss to the need for robust local enforcement, fearing that a shift to a centralized federal regime could leave consumers more vulnerable.

Legislative Outlook

The Senate currently needs 60 votes to overcome a filibuster. Republicans hold 53 seats, and the outcome of the coalition’s opposition could influence the final vote count. The debate centers on whether a unified federal rulebook outweighs the risk of weakening state‑level fraud deterrence.