Senator Cynthia Lummis wants to make sure the next time a crypto project implodes, customers aren’t left holding an empty bag. The Wyoming Republican is pushing the CLARITY Act through the Senate, a bill designed to keep customer digital assets legally separated from the firms that hold them, even when those firms go belly up.
The legislation, formally known as the Digital Asset Market Clarity Act of 2025 (H.R. 3633), already cleared the House and is now awaiting Senate deliberation. Lummis put it simply on July 20, 2026: “your crypto stays yours.”
What the CLARITY Act actually does
The bill tackles two problems that have plagued crypto markets since the industry’s spectacular string of failures. First, it establishes that customer digital assets must remain distinct from company assets in bankruptcy proceedings. Second, the CLARITY Act draws clearer jurisdictional lines between the SEC and the CFTC, settling which agency handles what and creating a more predictable regulatory environment for firms and investors alike.
The legislation earmarks approximately $150 million specifically to combat crypto scams, bolster anti-money laundering capabilities, and give law enforcement the tools for real-time interdictions against fraudulent operations.
