New York Attorney General Letitia James has warned Congress that the Clarity Act would weaken states' ability to enforce fraud laws against the crypto industry. According to The Block, James urged lawmakers to strengthen the bill amid growing pressure over its provisions.
State-level enforcement authority is one of the few levers that has actually reached crypto issuers, so any federal preemption fight directly affects how much legal exposure a token or product carries state by state. If you're building on Avalanche or Base, watch whether the final bill carves out or curtails state fraud actions, since that changes your compliance surface and where plaintiffs can come from. This is early positioning, not law, so treat it as a signal about the eventual balance of power rather than something to plan around yet.
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