17 State Attorneys General Oppose New Version of CLARITY Act

A bipartisan group of 17 state attorneys general and the District of Columbia has written to Senate Banking Committee Chairman Tim Scott, expressing concerns that the latest version of the CLARITY Act fails to adequately protect investors from crypto-related fraud. While the bill, recently updated by Senator Cynthia Lummis, includes provisions such as a ban on federal officials holding significant crypto interests, the attorneys general argue that the current language creates legal ambiguity that could hinder state-level enforcement against scams. The proposed legislation aims to place digital assets primarily under the oversight of the Commodity Futures Trading Commission (CFTC).