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Crypto Regulation

Lummis Says CLARITY Act Applies Securities Fraud Liability to Digital Asset Disclosures

US Senator Cynthia Lummis said the CLARITY Act already applies antifraud liability under Section 17(a) of the Securities Act to digital asset disclosures, meeting a Democratic demand that crypto issuers face the same fraud standard as other securities filers. The Senate’s procedural motion to advance the bill on Sept. 15 still failed, falling short of the 60-vote threshold.

Original source

AI take

Lummis's reading matters because it reframes a core Democratic objection as already settled in the bill's text, potentially narrowing the gap that stalled the procedural motion. The claim's significance rests on whether it is accepted by the senators whose votes fell short, since the failure was procedural rather than substantive. The open question is whether that interpretation draws the bill closer to the 60-vote threshold, or whether the underlying dispute over antifraud coverage remains unresolved.

Generated by AI for reference only.

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