New York Attorney General Letitia James led a bipartisan group of 17 state attorneys general in urging Congress to oppose the Clarity Act ahead of a key Senate procedural vote on Tuesday. The letter argues the bill would “muddy the waters” by making it harder for state attorneys general to fight fraud and hold companies accountable. James said the current text could embolden fraudsters and potentially strip attorneys general of authority to protect investors and their wallets. The attorneys general also warned the bill could allow the SEC to preempt state registration authority, weaken states’ ability to combat fraud through unclear wording, and give the SEC broad discretion to reset the scope of federal preemption. Signatories include attorneys general from California, Illinois, Arizona, Kansas, Ohio and Wisconsin.