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Senator Cynthia Lummis says CLARITY Act would have aided fund freezes during $6.3B Binance hack

U.S. Senator Cynthia Lummis stated that the CLARITY Act would have provided cryptocurrency firms with legal protections to quickly freeze funds following a $6.3 billion hack on Binance.

An illustration of a document cover titled CLARITY Act featuring a drawing of the U.S. Capitol building against a blue patterned background.
Image: @CoinGapeMedia

U.S. Senator Cynthia Lummis argued that the CLARITY Act would have given cryptocurrency firms legal cover to freeze funds "the instant law enforcement calls" during a $6.3 billion hack targeting Binance, according to reporting by Cointelegraph and CoinGape. She maintained that the legislation could have enabled exchanges to act more quickly to halt suspicious transactions.[1][2][3]

Following the attack, stablecoin issuers froze roughly $3 billion in stolen assets, even though a clear statutory framework governing such actions remains missing. The legislative remedy championed by Lummis remains stalled in the Senate after the CLARITY Act failed a cloture vote by a 49–50 margin on September 15.[1][2]

Key facts

  • Senator Cynthia Lummis stated the CLARITY Act would have given crypto companies legal protection to freeze funds immediately upon law enforcement requests during the Binance hack.
  • The Binance security breach involved an estimated $6.3 billion in funds.
  • Stablecoin issuers froze about $3 billion in stolen assets in the absence of a statutory framework.
  • The CLARITY Act failed a Senate cloture vote 49–50 on September 15 and remains stalled.

Sources · 3 sources

  1. CO

    Cointelegraph@CointelegraphPost on X ·

    🇺🇸 REGULATION: Senator Lummis says the CLARITY Act would have given crypto firms legal cover to freeze funds "the instant law enforcement calls" during the $6.3B Binance hack. The bill is still stuck in the Senate after a 49-50 vote. https://t.co/XQ5im76UDC

    Open source
  2. CO

    CoinGape@CoinGapeMediaPost on X ·

    🚨 CLARITY Act Debate Heats Up After the $6.3B Binance Hack! 🇺🇸 Lummis argues the CLARITY Act could have allowed exchanges to freeze suspicious funds faster. 💰 Stablecoin issuers froze about $3B in stolen assets, but a statutory framework remains absent. ⚖️ The bill failed a Senate cloture vote 49–50 on September 15, leaving the legal gap open as midterms approach. 🔗Know More in the comments.

    Open source
  3. CB

    Crypto BriefingArticle ·

    Senator Lummis: CLARITY Act could aid crypto firms in hacks like $6B Binance incident Senator Lummis discusses the CLARITY Act's potential to help crypto firms after the $6B Binance hack. Passage at 5.8% YES for Mike Lee's vote. The post Senator Lummis: CLARITY Act could aid crypto firms in hacks like $6B Binance incident appeared first on Crypto Briefing .

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