Lummis Warns Senate: Rejecting Crypto Bill Could Push Innovation to China

Senator Cynthia Lummis has urged her Senate colleagues to advance the CLARITY Act ahead of its upcoming September 15 vote. In a post on X, she warned that rejecting the legislation could push digital-asset innovation to China and weaken the US position in global financial markets.

Lummis cited FTX customers who waited years to recover their funds as evidence of the need for clearer crypto rules. She emphasized the importance of treating digital commodities as customer property in bankruptcy, which would determine how those assets are handled if a platform fails.

Lummis tweeted that her colleagues have a choice between American innovation and strong consumer protections or ceding the future of finance to China. The CLARITY Act aims to provide clearer guidelines for the crypto industry, addressing concerns about customer protection and market stability.