Lummis Touts Clarity Act as Safeguard for Crypto Holders

Senator Cynthia Lummis recently made headlines in the crypto space by discussing the proposed Clarity Act, which aims to protect customer digital assets in exchange bankruptcies. According to Lummis, the bill would require crypto platforms to keep customer funds separate from company assets, effectively safeguarding user Bitcoin (BTC), Ethereum (ETH), and other cryptocurrencies.

The measure is intended to address a regulatory gap that has left users as unsecured creditors in past crypto bankruptcies. By closing this gap, Lummis believes the Clarity Act would bring crypto custody rules closer to traditional brokerage standards.