A bipartisan coalition of state attorneys general has urged the U.S. Senate to amend the Digital Asset Market Clarity Act before taking a vote, citing concerns over federal preemption that could undermine state-level enforcement powers.
The attorneys general, representing 18 states and the District of Columbia, expressed worry in a letter that the proposed legislation might restrict their ability to pursue securities and commodities fraud cases related to online scams.
«We write to urge the Senate to expressly preserve the police powers of the states and ensure that the states remain armed with the tools necessary to protect the American people from predatory scammers,» the letter stated. «As the epidemic of online scams continues to grow, we remain firmly opposed to any federal statutory changes that would displace states’ authority to oversee the securities and commodities markets to protect everyday Americans.»
The letter referenced FBI data showing that $11.4 billion was stolen from investors last year through cryptocurrency-related schemes.
While recent drafts of the Clarity Act include provisions that «reserve certain powers for states to prosecute fraud,» the attorneys general argued that this language is «ambiguous» and could allow defendants to challenge state enforcement actions in court.
The letter specifically criticized the bill’s «qualified transaction» definition, which would allow the U.S. Securities and Exchange Commission to preempt state regulatory authority.
Signatories included top legal officials from New York, Arizona, Connecticut, California, Kansas, Ohio, and several other states, highlighting the bipartisan nature of the concern. Notably, Republican figures like Kris Kobach and Andy Wilson joined Democratic prosecutors such as Letitia James and Rob Bonta in opposing the bill’s current form.
Beyond state AGs, other organizations have voiced opposition to the latest draft. The Indian Gaming Association raised concerns about what it described as «the largest expansion of CFTC authority since the 2010 Dodd-Frank bill,» particularly regarding potential impacts on tribal sovereignty and gaming regulations.
«Until text is added to expressly provide that state, tribal gaming laws and the Indian Gaming Regulatory Act are not preempted by federal commodities law, and that [designated contract markets] are not permitted to list contracts on sports betting or casino games, Indian County will continue to urge members to vote against the Clarity Act and view its enactment as the greatest threat to tribal sovereignty in a generation,» said IGA Chair David Bean in a statement.
Senator Cynthia Lummis, a key sponsor of the bill, noted in a post on X that she had met with Bean in June but that he had not expressed opposition to the language at that time.
Another contentious aspect of the bill relates to how it regulates stablecoin yield and rewards. Christopher Williston, president and CEO of the Independent Bankers Association of Texas, criticized newly released yield language as «a joke» and «a meaningless nothing» in a social media post.
UPDATE (Sept. 14, 2026, 16:00 UTC): Adds Lummis tweet.
Tokenized equities lead RWA inflows as the market recovers; Binance’s bStocks hit ~$118.5M in two months, now #2 issuer and ~90% of on-chain equity DEX volume.
Why it matters:
Tokenized equities lead RWA inflows as the market recovers; Binance’s bStocks hit ~$118.5M in two months, now #2 issuer and ~90% of on-chain equity DEX volume.