Maryland AG Anthony Brown Joins 16-State Coalition Fighting to Protect Consumers from Crypto Scams

Maryland Attorney General Anthony G. Brown has joined a bipartisan coalition of 16 attorneys general in opposing the federal Digital Asset Market Clarity Act (Clarity Act). In a formal letter addressed to Senate Banking Committee leadership—Senators Tim Scott and Elizabeth Warren—the coalition warns that the bill would undermine state enforcement authority and dismantle the first line of defense against rampant cryptocurrency fraud and digital scams.

The Rising Tide of Crypto Scams

* Staggering Losses: In 2025 alone, the FBI reported $11.4 billion in losses connected to cryptocurrency complaints—a 22% jump over 2024—with an average reported loss of $62,604 per victim.

* FTC Findings: The Federal Trade Commission reported $1.78 billion in cryptocurrency-related consumer losses in 2025, marking a 25.6% annual increase.

* Local Impact: Because scammers frequently target everyday investors and families, state enforcement serves as an essential safety net, especially when victims lack federal or private legal recourse.

Key Concerns with the Clarity Act

* Preemption of State Authority: As drafted, the bill would allow the Securities and Exchange Commission (SEC) to reset federal preemption boundaries and preempt state registration regimes.

* Eroding Proven Protections: Since 2017, state attorneys general have initiated more than 330 anti-fraud enforcement actions across the cryptocurrency ecosystem, shutting down illicit platforms and holding bad actors accountable.

* Unprecedented Federal Power: The coalition cautions Congress against ceding unilateral authority to the SEC that could upend broader state securities oversight.

What State Attorneys General Are Asking Congress to Do

* Preserve State Enforcement: Protect the states' jurisdiction to police fraud across both tokenized and non-tokenized securities.

* Maintain Dual Registration: Keep state-level registration frameworks that require crypto platforms to register and certify within individual states.

* Foster Joint Cooperation: Maintain collaborative enforcement partnerships between federal agencies and state regulators.

* Close Ambiguities: Clarify vague legislative definitions that could embolden fraudulent platforms and prompt prolonged legal battles.

Coalition Members

* Along with Maryland, the bipartisan letter was signed by the attorneys general of Arizona, Connecticut, Delaware, the District of Columbia, Illinois, Kansas, Michigan, Minnesota, New Jersey, New York, Nevada, Ohio, Virginia, Washington, and Wisconsin.

Official updates and inquiries can be reviewed directly via the Maryland Office of the Attorney General.