State Attorneys General

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.

Prediction markets sharply lowered expectations for near-term passage of the Clarity Act after Senate negotiations hit another impasse. The setback came hours before a key procedural vote, with Republicans accusing Democrats of offering little movement from prior positions.

Senate Democrats delivered a counterproposal to Republicans on major crypto market structure legislation as lawmakers moved toward a critical procedural vote. The dispute centers on ethics language, state enforcement authority, stablecoin provisions and the scope of federal oversight.

A bipartisan group of state attorneys general is pressing the U.S. Senate to revise the Digital Asset Market Clarity Act before advancing it. The officials warn that ambiguous federal preemption language could limit state lawsuits tied to crypto scams, securities violations and commodities enforcement.

The Senate’s Digital Asset Market Clarity Act is moving closer to a vote after lawmakers released an integrated draft. Key disputes remain over ethics rules, state enforcement powers, illicit finance provisions and agency representation.

Senate negotiations over the Digital Asset Market Clarity Act remain focused on conflict-of-interest limits for federal officials. The central dispute is whether enforcement should rest with state attorneys general or the U.S. attorney general.