Summary

  • Sen. Cynthia Lummis renewed calls for the Clarity Act in late October 2026 after Binance suffered a $6B hack and KuCoin exited Russia and Belarus.
  • The proposed law would classify Binance as a covered person because it provides digital asset services.
  • The Clarity Act would give exchanges clear authority to freeze assets in response to law enforcement requests.

Senator Cynthia Lummis pushed the Clarity Act again in late October 2026. Binance had just lost $6 billion in a hack. KuCoin pulled out of Russia and Belarus right after.

These events show how crypto firms struggle with law enforcement requests. The senator says the law gives exchanges clear tools to act.

Firms now lack authority to freeze bad assets.

"What you fail to understand about the Clarity Act is that it would classify Binance as a covered person because it is a digital asset service provider."

, Senator Cynthia Lummis (x.com)

Context

The timing matches two events. KuCoin stopped services for users in Russia and Belarus in late October 2026. They blamed regulatory compliance.

Lummis linked it to Binance's hack. She sees it as proof the act is essential.

Current rules confuse exchanges on their duties. The act would define covered persons clearly for digital asset providers.

Details

Lummis posted on X. She explained the act puts Binance in the covered category. It provides digital asset services.

Her office added that the law would let the firm freeze hack-related assets. Reports back this up. It removes legal doubts for compliance.

KuCoin left those markets too. They cited rules.

The act hasn't passed yet. So effects are still ahead. Pullouts might tie more to sanctions than crypto gaps.

The law hits firms offering digital asset services. Binance would fall under it if passed.

Discussion continues. No set date for passage. Lawmakers will track if more exits happen as sanctions change.