Lummis says CLARITY would protect customer crypto in bankruptcy, but asset types and account terms could limit who qualifies.
- Senator Lummis's proposed CLARITY Act aims to protect customer crypto assets in bankruptcy, treating them as customer property.
- However, the bill's effectiveness is limited by asset type, account terms (e.g., lending vs. custody), and the specific insolvency regime.
- The distinction between holding assets for customers versus transferring title to the platform is crucial, as demonstrated by past failures like Celsius.
Topics: Legal regulatory, Institutional adoption, Blockchain usage, Securities law classification, Licensing issuer obligations, Onboarding prime brokerage, Ethereum evm l 1 s
Tags: #clarityact #senatorlummis #bankruptcy #customerproperty #cryptoassets #celsius #voyager #titletransfer #selfcustody #legalframework