White House considering CLARITY Act compromise that would grant state attorneys general enforcement power alongside the DOJ for crypto regulation.
Regulation & Gov ·
The White House is exploring a compromise approach to the CLARITY Act that would expand enforcement authority beyond the Department of Justice by granting state attorneys general concurrent power to regulate cryptocurrency. This shift would represent a meaningful restructuring of federal crypto oversight, distributing enforcement responsibilities across both federal and state levels rather than concentrating them solely at the DOJ.
The proposed framework reflects ongoing debate about how best to structure digital asset regulation in the United States. Currently, the DOJ operates as the primary federal law enforcement body for crypto violations, though regulators like the SEC and CFTC also have defined roles in rulemaking and administration. Granting state AGs enforcement power would create a multi-jurisdictional system, allowing state officials to pursue violations alongside federal prosecutors.
Key questions remain unresolved about how such a compromise would function in practice, including whether it would clarify or complicate enforcement efforts, how disputes between state and federal authorities would be resolved, and what specific authority state AGs would hold. The status of negotiations and likelihood of the compromise gaining legislative traction remain unclear.