Possibly the most important open letter impacting the progress of the Clarity Act tomorrow. Today, the New York Attorney General, along with attorneys general from 17 other states (including two Republican AGs), sent a letter to Senate Banking Committee Chairman Tim Scott and ranking Democrat Elizabeth Warren, strongly opposing the Clarity Act. The core accusation from these state attorneys general is that while the latest draft nominally leaves some anti-fraud powers to the states, the language is vague, the scope is narrowed, and defendants could invoke federal preemption to challenge state enforcement powers—or even strip states of their ability to combat fraud altogether. James stated: The current draft would embolden fraudsters and could strip attorneys general of their ability to protect their states' investors. Congress should not pass this. Three main concerns: 1) State regulation of securities/commodities markets could be "squeezed out" by federal authority; 2) The SEC might gain unilateral discretion to redefine the scope of federal preemption, potentially overturning state registration rights; 3) Anti-money laundering and federal-state collaboration provisions are not robust enough. It’s clear these state attorneys general want to firmly preserve state enforcement and registration rights over digital assets while strengthening federal-state enforcement coordination. With two Republican AGs on board, it can technically be called "bipartisan," but the majority are from blue-state enforcement systems. While attorneys general can’t vote in the Senate, this adds external pressure on Democrats like Warner, Cortez Masto, and Booker, who emphasize illegal finance and state rights.