Connecticut Attorney General William Tong joined a bipartisan coalition of 16 other state attorneys general in sending a letter to the U.S. Senate Banking Committee opposing the Digital Asset Market Clarity Act, warning it would preempt state authority to protect investors from cryptocurrency fraud and scams. The coalition urges Congress to preserve state enforcement, registration, and federal-state cooperation roles over digital assets. This is a legislative advocacy action, not an enforcement action — no entity was charged, no violations were found, and no penalty was imposed.
No remedies imposed. The press release announces a multistate advocacy letter to Congress opposing proposed legislation; the coalition asks Congress to preserve state enforcement roles for tokenized and non-tokenized securities, preserve federal-state cooperation, codify state crypto registration regimes, and clarify ambiguous language in the bill.
This is a legislative advocacy action rather than an enforcement action, so it imposes no direct contractual obligations today. However, if the Clarity Act advances, in-house teams at companies with digital-asset exposure — including payment processors, custody providers, exchanges, and investment platforms — should review change-in-law and regulatory-compliance clauses in vendor and customer agreements to address potential SEC preemption of state registration regimes, representations and warranties regarding the legal classification of digital assets as securities, state licensing and registration obligations for crypto platforms, and allocation of liability for fraud or investor-protection compliance failures. Organizations operating in states that signed the letter (CA, NY, NJ, MA, WA, and others) should anticipate continued aggressive state-level crypto enforcement and ensure vendor agreements include cooperation clauses for state AG inquiries and indemnification for regulatory actions arising from digital-asset services.
Entity
Digital Asset Market Clarity Act (proposed federal legislation — no enforcement target entity)
Industry
OtherOfficial Press Release
https://portal.ct.gov/ag/press-releases/2026-press-releases/ag-tong-calls-on-congress-to-preserve-ability-to-protect-against-crypto-scams
2026914 clarity act letter with signatures.pdf?rev=a9beaeccb
https://portal.ct.gov/-/media/ag/press_releases/2026/2026914-clarity-act-letter-with-signatures.pdf?rev=a9beaeccbccb41b1bfffd343921c9645&hash=F3F0F92FC83E21548101E7FB7B6577FB
Connecticut Attorney General Enforcement Page
https://portal.ct.gov/AG/Privacy/Privacy-Resources
"Attorney General Tong Calls on Congress to Preserve States’ Ability to Protect Americans from Cryptocurrency Scams"
"09/14/2026"
"Attorney General William Tong today joined a bipartisan coalition of 16 other attorneys general in opposing the Digital Asset Market Clarity Act (Clarity Act)"
"the Digital Asset Market Clarity Act (Clarity Act)"
"opposing the Digital Asset Market Clarity Act (Clarity Act)"
"The attorneys general caution that as written, the Clarity Act would prevent states from serving as the first line of defense against the escalating epidemic of cryptocurrency fraud."
$694.0M
Connecticut Attorney General William Tong joined 40 other state attorneys general in a settlement with Credit Acceptance Corporation (CAC), one of the nation's largest subprime auto lenders, resolving allegations that CAC originated loans it knew or should have known consumers could not afford and encouraged or failed to prevent dealers from 'packing' CAC loans with unwanted Vehicle Service Contract (VSC) and GAP products. The settlement, announced September 17, 2026 and effective November 2, 2026, directs $694 million in cash restitution and debt relief to consumers, plus an additional $15 million to the states, and imposes injunctive lending reforms. Note: this is a consumer-protection/lending enforcement action rather than a data privacy matter; the violation categories are best-fit mappings to the available taxonomy.
Connecticut Attorney General William Tong issued an advisory that newly enacted privacy laws take effect October 1, 2026, including Public Act 26-64 (SB4), which amends the Connecticut Data Privacy Act, and Public Act 26-15 (SB5), which established the Connecticut Artificial Intelligence Responsibility and Transparency Act (CART Act). The new laws regulate surveillance pricing, facial recognition technology, genetic data collected by direct-to-consumer testing companies, a ban on the sale of precise geolocation data, a data broker registry, AI use in employment decisions, and chatbots offered to children. No enforcement action was taken; this is prospective guidance alerting consumers and businesses to new rights and compliance requirements.
$384.2M
Connecticut joined 39 other states and the federal government in a $384 million False Claims Act settlement with Abbott Laboratories over allegations that the company failed to manufacture powder infant formula and nutritional therapy products in compliance with federal and state requirements at its Sturgis, Michigan, and Casa Grande, Arizona facilities. Abbott allegedly manufactured formula in conditions that risked microorganism contamination and failed to disclose contamination test results to the FDA during 2019 and 2022 inspections. The settlement resolves claims that Abbott caused false claims to be submitted to the WIC program and state Medicaid programs between January 1, 2018, and December 31, 2022.
Connecticut Attorney General William Tong announced a civil investigative demand into MediaLab.AI Inc., owner of the Kik Messenger app, over lax age assurance practices, content moderation, and child safety failures that advocates have dubbed a "predator's paradise." The action follows a July 2025 notice of violation under the Connecticut Data Privacy Act for privacy notice deficiencies and processing sensitive data — including health, biometric, and precise geolocation data — without proper consent, which the company has only partially addressed. The new investigation seeks records related to practices that may constitute unfair or deceptive acts or practices under the CTDPA and the Connecticut Unfair Trade Practices Act. No fine has been imposed to date.
Attorney General William Tong issued a consumer alert warning Connecticut residents about unregulated, offshore decentralized finance (DeFi) cryptocurrency exchanges, naming GMX, Gains Network, dYdX, Aevo, Drift Protocol, Vertex Protocol, and Hyperliquid. The alert highlights risks including bypassing U.S. law via VPNs, predatory leverage up to 250x, misleading synthetic asset products, and lack of KYC protections. No enforcement action or penalty was imposed; at least one Connecticut consumer reportedly lost $200,000 deposited with an unregulated DeFi exchange.
$2.0M
Attorney General Tong and a coalition of four other states and the FTC sued Zillow and Redfin after Zillow paid Redfin $100 million to shut down its multifamily rental advertising business and transfer clients to Zillow. The settlement requires the companies to restore competition, with Redfin rebuilding its apartment advertising business, and pay $2 million to the coalition.