Lummis Says Democrats Opposed CLARITY Act Despite Clause on Crypto Issuer Liability for False Disclosures
Summary
- Sen. Cynthia Lummis said the CLARITY Act includes a legal liability provision for cryptocurrency issuers over false disclosures.
- Lummis said Democrats opposed advancing the bill despite those investor protection provisions.
- The CLARITY Act failed to pass a procedural vote in the U.S. Senate for floor consideration, and Democrats cited President Trump's crypto-related conflicts of interest and insufficient ethics rules as reasons for their opposition.
Forecast Trend Report by Period
Sen. Cynthia Lummis, a Wyoming Republican, said Democrats opposed the CLARITY Act even though it includes a provision holding cryptocurrency issuers legally liable for false disclosures.
Cointelegraph reported on September 21 that Lummis said the CLARITY Act would subject crypto issuers to legal liability if they disclose false information.
She said Democrats opposed advancing the bill despite those investor-protection provisions.
The CLARITY Act failed to pass a procedural vote in the U.S. Senate on September 15, blocking it from moving to full floor consideration. Democrats said they opposed the measure in part because it lacked sufficient ethics rules to prevent conflicts of interest related to President Donald Trump's cryptocurrency activities.
