The North American Securities Administrators Association (NASAA) has sent a letter to the Senate Banking Committee urging members to vote against the CLARITY Act in its current form.
NASAA is the lobbying group that represents all the US state securities regulators, as well as regulators in Canada and Mexico.
While stating they support “responsible innovation, the group lists multiple areas they ask to be changed.
These include:
Maintaining “regulatory parity” in regard to tokenized assets, specifically when it comes to state authority, like anti-fraud and investigative powers.
Beyond this parity, NASAA said they remain concerned that bad actors will use “selective text” in the bill to commit fraud, resulting in “enforcement gaps.”
The group also wants licensing and registration authority over broker-dealers, advisors, and others they deem foundational to investor protection. NASAA worries that current language will undermine the federalism framework, explaining “a few short drafting adjustments” will avoid “years of costly litigation.”
NASAA describes the bill as granting overbroad exemptive authority to federal regulators such as the Securities and Exchange Commission.
NASAA says it is committed to working constructively with Congress, but the current legislation needs “mission-critical revisions.”
…” We respectfully urge the [Senate Banking Committee] to vote NO on the legislation unless those issues are resolved.”
The group is one of several comments that have arisen in advance of the Senate Banking Committee’s scheduled markup hearing this Thursday.
The CLARITY Act was approved by the House in 2025 but has been mired in a legislative morass during 2026. NASAA has long been defensive regarding any perceived or actual infringement of its regulatory powers at the state level.
During markup, changes to the bill can be made, and opponents may be able to sway certain Senators to demand changes to the legislation, which could alter the bill’s current compromise status.
