U.S. Senator Lummis: The CLARITY Act should be passed to grant stablecoin issuers legal protection to freeze funds involved in illegal activities.

BlockBeats news, September 10: U.S. Senator Cynthia Lummis stated that Tether's recent lawsuit over freezing $42.4 million in USDT highlights the regulatory gaps in the crypto industry's efforts to combat illegal financial activities. She pointed out that currently, stablecoin issuers and trading platforms may face civil litigation risks if they freeze related assets due to suspected illegal activities.

Lummis said that Section 305 of the Digital Asset Market Structure Clarity Act would grant stablecoin issuers and trading platforms the necessary authority to promptly freeze stablecoins suspected of involvement in illegal activities while avoiding civil liability. She believes this provision can help the crypto industry more effectively prevent the flow of illicit funds and address the legal risks currently faced by issuers and trading platforms when taking compliance measures.