New York AG leads 17 state officials against CLARITY Act

A bipartisan group of 17 state attorneys general has urged the U.S. Senate to reject the CLARITY Act ahead of a key procedural vote, arguing that the crypto market structure bill could restrict states’ ability to pursue fraud and enforce investor protection laws. Summary A bipartisan group of 17 state attorneys general urged senators to reject the CLARITY Act, arguing it could weaken their authority to pursue crypto fraud and protect investors. New York Attorney General Letitia James said the bill could give the SEC new authority to preempt state registration powers and create uncertainty around state securities enforcement. Senate Republicans released a revised version of the bill ahead of Tuesday’s procedural vote, adding a state role in enforcing conflict of interest rules for public officials. The revised legislation would let the Treasury secretary impose an 18 month circuit breaker on stablecoin rewards if payment stablecoins cause substantial deposit outflows from community banks. The bill changes protections for certain software developers and clarifies state consumer protection rules, but the attorneys general said the revisions did not resolve their enforcement concerns. ...