WASHINGTON, D.C. – (February 25, 2026) – The North American Securities Administrators Association (NASAA) is calling on Congress to preserve state regulatory authority and essential investor protections as it advances digital asset market legislation.
In a letter to Senate leadership regarding the CLARITY Act and the Digital Commodity Intermediaries Act (DCIA), NASAA emphasized that maintaining state authority is vital to market integrity. NASAA’s key asks include:
- Maintain Regulatory Parity: NASAA strongly supports Section 505 of the CLARITY Act, affirming the parity in the treatment of securities issued and traded on-chain and off-chain.
- Protect State Enforcement: The association urged lawmakers to include “savings clauses” and make other changes to ensure state regulators retain anti-fraud, investigative, and licensing powers.
- Preserve State Licensing and Registration Authority: The legislation should clearly maintain states’ authority to license and register securities firms and professionals operating within their jurisdictions, ensuring continued oversight of those serving retail investors.
- Preserve the Howey Framework: NASAA cautioned against any language that would narrow the definition of an “investment contract,” which is currently used to combat evolving crypto scams.
- Ensure Sustainable Funding: Any new market structure must support sustainable funding for capital formation oversight, investor protection efforts, and investor education initiatives carried out at both the federal and state levels.
NASAA also cautioned against granting federal agencies expanded “exemptive authority” without public notice-and-comment rulemaking, arguing that foundational securities questions should remain within Congress’s purview.
In the letter, NASAA President Marni Gibson acknowledged improvements to the legislation and highlighted the works states have done to help guard against bad actors seeking to misuse technology to harm investors. State regulators serve as the frontline defense against fraud: registering firms, conducting exams, and pursuing enforcement for Main Street investors who might otherwise have no recourse.
While supporting responsible innovation, NASAA remains committed to working with its federal regulatory partners and Congress to modernize regulation without sacrificing the proven federal-state framework that protects investors daily.
– NASAA –
About NASAA:
Organized in 1919, the North American Securities Administrators Association (NASAA) is the oldest international organization devoted to investor protection. NASAA is a voluntary association whose membership consists of the securities regulators in the 50 states, the District of Columbia, Puerto Rico, Guam, the U.S. Virgin Islands, the 13 provincial and territorial securities regulators in Canada, and the securities regulator in México. For more information, visit www.nasaa.org.
For More Information:
Fred Baldassaro, Director of Communications
fbaldassaro@nasaa.org | 202-737-0900
Karen Grajales, Manager, Communications and Investor Outreach
kgrajales@nasaa.org | 202-737-0900
