Lummis Seizes Tether Lawsuit Momentum to Push CLARITY Act Forward

Senator Cynthia Lummis is leveraging a lawsuit involving $42.4 million in frozen Tether tokens to push for passage of the CLARITY Act.

Lummis took to social media on September 10, stating that Section 305 of the bill would provide protection for issuers and exchanges from certain lawsuits related to temporary transaction holds.

The lawsuit revolves around a February 2026 court order requiring Tether to freeze the tokens and transfer an equivalent amount of USDT to a government-controlled wallet.

Lummis urged senators to advance the bill when Congress returns, highlighting the importance of Section 305 in addressing law-enforcement requests and allowing crypto companies to delay transactions for up to 30 days with possible extensions.