Lummis Pushes for CLARITY Act Amid BlockFi and Genesis Collapses
U.S. Senator Cynthia Lummis (R-WY) has renewed her call for passage of the CLARITY Act, citing lessons from cryptocurrency platform collapses like BlockFi and Genesis.
Lummis argued that the bill would legally separate customer crypto assets from bankruptcy estates, preventing users from becoming unsecured creditors if crypto firms fail.
The senator highlighted how customers of BlockFi and Genesis learned that, in the absence of clear regulatory rules, their account balances amounted to unsecured claims in bankruptcy proceedings.
Lummis wrote on X, 'BlockFi and Genesis customers learned a hard lesson: without clear rules, your account balance is really just an unsecured claim in a bankruptcy filing. The CLARITY Act changes that math. Segregated customer assets don’t belong to the estate; they belong to those individuals.'