CLARITY Act Would End Exchange Bankruptcy Crypto Grab, Lummis Says

Voyager customers also became unsecured creditors after the lender entered bankruptcy, with their recoveries determined through the restructuring process rather than the automatic return of deposited crypto.

Lummis has described the bankruptcy provisions as one part of a broader effort to establish comprehensive rules for U.S. digital asset markets. She has said the CLARITY Act is designed to deliver regulatory certainty for developers, stronger protections for investors and greater market integrity. The legislation would also clarify the respective roles of the Securities and Exchange Commission and the Commodity Futures Trading Commission, reducing uncertainty over which agency oversees different segments of the crypto market.

According to Lummis, Senate lawmakers spent months negotiating their version of the legislation before preparing it for introduction. She has said the proposal includes enhanced anti-money laundering standards and additional consumer protections while creating a regulatory framework intended to keep crypto innovation and investment in the United States rather than pushing companies overseas.

Although the House approved the CLARITY Act, the legislation has yet to clear the Senate. Supporters argue the bill would complement existing stablecoin legislation by establishing a comprehensive federal framework for digital asset markets, while continued delays leave unresolved questions surrounding custody, market oversight and investor protections. The next catalyst will be Senate consideration of the bill and whether lawmakers preserve the customer-property protections highlighted by Lummis.

Lummis said the CLARITY Act contains more than 16 illicit finance safeguards, pushing back against claims that the bill would weaken anti-money laundering enforcement.