Senator Cynthia Lummis has called for urgent custody regulations in the digital asset sector, warning that cryptocurrency exchanges have failed in the past because customer funds were not properly segregated. In a public statement on September 5, 2026, she stressed that investors remain vulnerable when platforms operate without clear custodial safeguards.
The proposed Clarity Act is at the center of her push. The bill would require that qualified custodians manage segregated customer funds, an approach Lummis argues could prevent future exchange collapses and help restore trust. Her remarks come as lawmakers continue debating a broader regulatory framework following high-profile failures in the industry.
Market participants are watching whether the Clarity Act will advance through Congress. As a senator with oversight of financial policy, Lummis’ position carries weight, and the eventual custody rules could influence how exchanges and custodians handle user assets, potentially shaping market sentiment and investor protection standards.
