Consumer Protection

The Senate failed to advance the Clarity Act after no Senate Democrat voted to move the digital asset legislation forward. The setback has sharpened partisan conflict over crypto market structure, consumer protections, and the role of the SEC and CFTC.

California Governor Gavin Newsom signed AB 2409, barring state public officials from issuing memecoins tied to personalities, jokes or viral trends. The measure was approved alongside bills targeting corruption, consumer protection and cryptocurrency-related crime.

Apple is facing a federal lawsuit alleging it allowed a fraudulent bitcoin wallet app impersonating Sparrow Wallet to remain on the App Store after a major theft report. Three plaintiffs claim they collectively lost about $1.84 million after entering seed phrases into the app.

A key group of Senate Democrats says the latest Digital Asset Market Clarity Act draft needs stronger provisions before it can advance. The objections focus on ethics for elected officials, consumer protection, illicit finance, conflicts of interest and market integrity.