Lummis Uses $42M Tether Lawsuit to Push Senate Toward CLARITY Act

Sen. Cynthia Lummis is using a lawsuit over $42.4 million in frozen Tether tokens to press lawmakers to advance the CLARITY Act.

In a Sept. 10 post on X, Lummis said Section 305 would protect issuers and exchanges from certain lawsuits involving temporary transaction holds. She urged senators to advance the bill when Congress returns.

This lawsuit highlights a dangerous gap in the fight against illicit finance in crypto. Right now, exchanges and issuers can’t freeze stablecoins if they suspect illicit activity without fear of a lawsuit. Section 305 of the Clarity Act gives issuers and exchanges the power they…

— Senator Cynthia Lummis (@SenLummis) September 10, 2026

Tether Lawsuit Highlights Freeze Dispute

The lawsuit involves $42.4 million in USDT that Tether froze across two Ethereum addresses. Two Thai nationals sued in New York, alleging that a U.S. Homeland…

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