Letitia James leads 18 attorneys general in call to preserve state crypto fraud powers

New York Attorney General Letitia James and 17 other attorneys general urged the Senate on September 14 to preserve states’ authority to fight cryptocurrency fraud as it considers the Digital Asset Market Clarity Act. In a signed letter to Senate Banking Committee Chairman Tim Scott and Ranking Member Elizabeth Warren, the bipartisan coalition opposed the bill’s current form unless state enforcement powers are protected.

The group includes attorneys general from Kansas and Ohio alongside Democratic-led states, according to the New York attorney general’s announcement. The 18 signers warned that wording in the draft could invite challenges to state investigations, prosecutions, and registration rules. That is the coalition’s position, not an established legal effect of the bill.

What the coalition wants changed

The letter asks Congress to preserve state authority over both tokenized and traditional securities, protect state registration requirements, and clarify that the bill does not displace antifraud powers. The signers said states have brought more than 330 cryptocurrency-related antifraud enforcement actions since 2017, citing a count from state securities regulators.

James made a related argument in July 27 testimony to a Senate subcommittee. The September letter widened that position to a multistate coalition.

Lawmakers present a different account

On the same day, Senators Cynthia Lummis, John Boozman, and Tim Scott released a revised draft and said it incorporated 126 substantive changes requested by Democrats. They described the draft as giving state attorneys general a meaningful enforcement role. The attorneys general’s letter urged a no vote on the current version unless their powers were fully preserved. The two statements do not establish how the bill would work if enacted.

The Senate Banking Committee advanced the bill by a 15 to 9 vote in May 2026, according to the lawmakers’ September release.