Lummis Warns Senate: Reject Crypto Bill & Hand US Financial Supremacy to China
US Senator Cynthia Lummis is urging her colleagues to advance the CLARITY Act, a bill that aims to clarify regulations for digital assets. The legislation would treat digital commodities as customer property in bankruptcy, requiring qualified custodians and segregated funds to keep customer assets separate from company funds.
Lummis warned that rejecting the bill could lead to China becoming a leader in crypto innovation, weakening the US position in global financial markets. She cited FTX customers who waited years to recover their funds as evidence of the need for clearer crypto rules.
The CLARITY Act has faced uncertainty due to disagreements over ethics provisions, with Democrats seeking restrictions related to President Donald Trump's family crypto interests. Republican senators have warned that the bill could fail without an agreement on these provisions.