Senator Lummis Proposes Clarity Act to Protect Customer Crypto in Exchange Bankruptcies
Senator Cynthia Lummis has introduced the Clarity Act, a proposed U.S. federal law aimed at ensuring that customers retain ownership of their cryptocurrency assets even if the exchange holding them files for bankruptcy. The legislation seeks to prevent customer-deposited cryptocurrencies from being treated as part of the exchange's estate, a situation that occurred during the bankruptcies of Celsius and Voyager, where customers lost significant portions of their holdings. The Clarity Act would legally recognize customer ownership of deposited crypto, impose stricter custodial, auditing, and compliance standards for exchanges, and provide a clear market-structure framework to boost crypto adoption and restore confidence in centralized exchanges. 
