Sen. Lummis says Clarity Act would protect customer crypto in exchange bankruptcies

Crypto-friendly U.S. Sen. Cynthia Lummis said on X the core of the Clarity Act is that customers would retain ownership of their cryptocurrencies even if an exchange goes bankrupt. Lummis explained that when Celsius and Voyager went bankrupt, cryptocurrencies deposited by customers were not protected as customer assets and were instead included in the bankruptcy estate. Those assets were then treated as property available for repayment among creditors unrelated to the customers, Lummis said. Under the Clarity Act, that structure would change so ownership of customer-deposited crypto would remain with customers even if the company enters bankruptcy.