U.S. senator says CLARITY Act would help prevent another $40B Terra collapse

Crypto-friendly U.S. Sen. Cynthia Lummis said on X that about $40 billion was wiped out in Terra’s collapse, and most of the remaining assets disappeared during the bankruptcy process itself. Lummis said the CLARITY Act would not simply distinguish between reserve-backed assets and experimental algorithm-based assets, but would also help ensure customer assets do not become first-priority creditor claims even if a project fails.