Lummis Pushes CLARITY Act Through Senate, Protecting Customer Crypto Rights

Senator Cynthia Lummis is pushing for swift passage of the CLARITY Act to protect customer crypto rights. The legislation aims to prevent customer deposits from being treated as assets in bankruptcy pools, safeguarding individual investments during bankruptcies such as those experienced by Celsius and Voyager.

Lummis emphasized the need for a robust regulatory framework for digital assets, stating that past bankruptcies have shown the necessity of protecting customer deposits. A critical hearing is scheduled for July 17 in New York to examine the potential impacts of the legislation on financial innovation and consumer protection.

The CLARITY Act is part of a broader legislative effort to create a comprehensive regulatory framework for digital assets in the U.S. This move comes amid growing concerns among lawmakers about the risks of inaction in the rapidly evolving digital asset landscape, as innovation moves overseas without clarity.