Lummis Touts CLARITY Act's Exchange Protection Measures Ahead of Senate Vote

U.S. Senator Cynthia Lummis (R-Wyo.) has reiterated her support for the CLARITY Act, emphasizing its importance in protecting cryptocurrency users from exchange failures.

Lummis pointed to past crypto exchange collapses and customer losses as a reason for the proposed legislation's necessity. She noted that exchanges have fallen without adequate custody rules and consequences, highlighting the need for qualified custodians and segregated customer funds.

The senator linked her comments to the FTX collapse in 2022, where she argued stronger custody rules could have prevented the failure. The CLARITY Act would establish a federal framework for digital asset markets, dividing regulatory responsibilities between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).