CLARITY Act Will Protect Customer Crypto Assets in Exchange Bankruptcies, Says Senator Lummis

According to Senator Cynthia Lummis, the CLARITY Act will protect customer cryptocurrency assets during exchange bankruptcies by requiring regulated digital asset platforms to treat client cash and digital assets as customer property separate from company assets. The legislation also prohibits brokers, dealers, and exchanges from using customer assets without authorization. The Act has passed the House and is pending Senate approval. The proposal addresses disputes from the Celsius and Voyager bankruptcies, where courts ruled customer deposits became company property, affecting approximately 600,000 accounts and $4.2 billion in assets.
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