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New York Leads 18-State Coalition Against CLARITY Act Over State Crypto-Enforcement Powers

The U.S. Senate rejected cloture on the CLARITY Act 49-50 after New York and a multistate coalition warned of weakened crypto enforcement.

New York Leads 18-State Coalition Against CLARITY Act Over State Crypto-Enforcement Powers

The U.S. Senate on Sept. 15 rejected cloture on proceeding to H.R. 3633, the Digital Asset Market Clarity Act, in a 49-50 vote, blocking the chamber from moving forward with the bill through that procedural vote. One day earlier, New York Attorney General Letitia James led a multistate coalition warning that the legislation could weaken states' ability to pursue cryptocurrency fraud and scams; the available record establishes the close timing but does not show that the warning caused the result.

Senate blocks a vote on the CLARITY Act

Cloture is the Senate procedure used to limit debate and allow a measure to advance. With the motion rejected, the Senate did not proceed to the underlying bill on Sept. 15.

H.R. 3633 has become a focal point in a broader dispute over how digital-asset markets should be regulated and which authorities should retain enforcement powers. The vote leaves that dispute unresolved in the Senate.

James coalition targets state enforcement preemption

On Sept. 14, James joined 17 other state attorneys general and the District of Columbia in opposing the CLARITY Act, according to a New York attorney general's office release. Their central concern was that the measure could erode state authority to combat crypto-related fraud and scams.

In a letter to Congress, the coalition asked lawmakers to preserve state enforcement over both tokenized and non-tokenized securities. It also urged retention of state crypto-registration regimes, continued federal-state cooperation and clearer statutory language where ambiguity could otherwise lead to litigation over enforcement authority.

Enforcement record cited by states

James's office said states have brought more than 330 anti-fraud enforcement actions against crypto scammers since 2017. The office also cited FBI-reported cryptocurrency losses of $11.4 billion in 2025 as part of its case for preserving state-level authority.

The coalition's intervention placed state enforcement at the center of the CLARITY Act debate, rather than limiting the disagreement to the bill's market-structure framework. For now, the 49-50 cloture vote means the legislation did not advance through the Senate procedure considered Sept. 15.

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