Lummis Proposes Clarity Act to Safeguard Customer Crypto Assets

Senator Cynthia Lummis, a long-time advocate for cryptocurrency-friendly policy, has proposed the Clarity Act to protect customer digital assets in exchange bankruptcies.

The bill aims to ensure that customers retain ownership of their cryptocurrencies even if the platform holding those assets becomes insolvent.

Lummis pointed to the high-profile collapses of Celsius Network and Voyager Digital as the driving force behind the bill, citing the unfair treatment of customer-deposited cryptocurrencies in bankruptcy proceedings.

The Clarity Act would establish a clear statutory framework that recognizes customer ownership rights over deposited digital assets, shielding them from claims by other creditors.