Senator Cynthia Lummis says the CLARITY Act would ensure customer-owned crypto remains customer property if an exchange fails, addressing a legal gap exposed by the bankruptcies of Celsius and Voyager while advancing broader U.S. crypto market rules.
Key Takeaways
Senator Cynthia Lummis says the CLARITY Act would keep customer crypto separate from a failed company’s bankruptcy estate.The proposal responds to legal disputes that emerged during the Celsius and Voyager bankruptcies.Lummis argues the bill would pair stronger customer protections with clearer regulatory rules for the U.S. digital asset market.The proposal would require covered digital asset intermediaries to treat customer cash and digital assets as customer property rather than corporate assets. It would also require firms to segregate customer assets from company property and generally prohibit brokers, dealers and exchanges from using customer assets for their own benefit or for the benefit of another person without authorization.
Celsius and Voyager Bankruptcies Exposed Customer Ownership Risks Customer Protections Are Part of a Broader Crypto Market Structure Bill
