Lummis Challenges Democrats Over Failed Crypto Fraud Safeguard

Cynthia Lummis says Democrats proposed a ten-year criminal-conviction restriction that Republicans accepted for Regulation Crypto. Existing SEC fundraising exemptions already contain bad-actor disqualification rules, although their scope differs from the proposed safeguard. The CLARITY Act’s failure leaves token issuers dependent on existing securities-law pathways rather than a dedicated federal framework. Senator Cynthia Lummis has revived a dispute over the failed CLARITY Act, accusing Democrats of blocking legislation that incorporated their own proposal to prevent convicted financial criminals from raising capital through a new cryptocurrency fundraising exemption.