Lummis Pushes $150M CLARITY Act to Target Crypto Fraud

The proposed bill grants cryptocurrency exchanges and stablecoin issuers the authority to freeze suspicious transactions for up to 30 days, with law enforcement capable of extending that hold to 180 days. By subjecting digital asset firms to Bank Secrecy Act obligations, the act forces these entities to implement Anti-Money Laundering programs and report suspicious activities, mirroring the oversight applied to traditional financial institutions.

Beyond enforcement, the legislation attempts to resolve the regulatory friction between the Securities and Exchange Commission and the Commodity Futures Trading Commission. It mandates clear distinctions between digital commodities and securities while requiring the segregation of customer assets from company funds. This effort follows a 15-9 vote by the Senate Banking Committee, moving the bill toward a broader congressional debate as lawmakers seek to curb fraud without stifling innovation.