Senator Lummis Pushes CLARITY Act Through Senate Banking Committee

US Senator Cynthia Lummis has introduced legislation to protect customer assets on cryptocurrency platforms. The Digital Asset Market Clarity Act, or CLARITY Act, aims to reclassify customer digital assets as actual property rather than corporate assets.

The bill recently cleared the Senate Banking Committee with a 15-9 bipartisan vote. Its passage comes after a series of high-profile platform failures, including Celsius and Voyager, where customer deposits were treated as company assets during bankruptcy proceedings.

Crypto users currently lack bankruptcy protections for their digital assets on centralized platforms. Until legislation like the CLARITY Act passes, these deposits are legally closer to an unsecured loan than a protected account, according to Senator Lummis.