Lummis Seeks Senate Action on Clarity Act Amid $42M Tether Freeze Dispute

Sen. Cynthia Lummis is using a $42.4 million Tether lawsuit to push lawmakers towards advancing the CLARITY Act. The act includes Section 305, which would protect issuers and exchanges from certain lawsuits involving temporary transaction holds.

Lummis took to X on September 10, stating that this provision gives issuers and exchanges the power they need to respond to government requests to restrict suspicious funds.

The lawsuit in question involves $42.4 million in frozen USDT across two Ethereum addresses. Two Thai nationals sued Tether in New York, alleging that a U.S. Homeland Security Investigations agent informally requested the freeze in October 2025 without a warrant or court order.