Key facts
- Binance lost approximately $6.3 billion in a hack on October 29, 2026.
- The CLARITY Act, which would have granted crypto exchanges freeze authority, failed in the Senate on September 15, 2026.
- Stablecoin issuers froze about $3 billion in assets following the Binance hack.
- Senator Lummis stated the CLARITY Act would classify exchanges as 'covered persons' with temporary-hold authority.
Wyoming Senator Cynthia Lummis stated that the stalled CLARITY Act would have provided crypto exchanges with the legal authority to freeze suspicious funds, citing the recent $6.3 billion Binance hack as evidence of the bill's absence. The act, which passed the House in 2025, failed a Senate cloture vote on September 15, 2026. Lummis argued that the bill would classify exchanges as 'covered persons' with explicit temporary-hold authority, reducing civil liability risk when acting on a reasonable belief of illicit activity. Stablecoin issuers like Tether, Circle, and Ripple did freeze billions in assets following the Binance hack, but Lummis contends a durable statutory framework is still missing.