# CLARITY Act to Safeguard Crypto Assets in Exchange Bankruptcies Senator Lummis aims to protect customer assets in crypto exchange bankruptcies. - **Source:** [Bitcoin News](https://brifing.si/source/d8aeaf1e-9839-4dad-9d25-7a6bf3fbeef8) - **Published:** 2026-07-20 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/51870a9d-ebff-4a27-9ced-ad591599a01e ## What is the CLARITY Act? The CLARITY Act aims to protect customer assets in the event of crypto exchange bankruptcies. This legislation seeks to address legal gaps exposed by the bankruptcies of Celsius and Voyager. ## Protection of Customer Assets Senator Cynthia Lummis states that the CLARITY Act will separate customer crypto assets from a company's bankruptcy estate. This ensures that customer assets remain protected during bankruptcy proceedings. ## Celsius and Voyager Cases The bankruptcies of Celsius and Voyager highlighted one of the biggest legal uncertainties in the crypto industry. Customer assets were included in the companies' bankruptcy estates, leaving customers as unsecured creditors. ## Legal Regulations The CLARITY Act mandates that crypto exchanges segregate customer assets from company assets. It also prohibits the unauthorized use of customer assets and provides stronger protections. ## Regulations for the US Crypto Market The CLARITY Act aims to establish comprehensive rules for the US crypto market. This legislation seeks to reduce regulatory uncertainties and enhance investor protections. ## Senate Process and Future The CLARITY Act has yet to pass the Senate. Supporters argue that the act will create a comprehensive federal framework for the crypto market and strengthen investor protections. ## Sources covering this story - https://news.bitcoin.com/clarity-act-would-protect-customer-crypto-from-exchange-bankruptcies-senator-says/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._