On Thursday, September 10, 2026, Coin Edition reported that Senator Cynthia Lummis is leveraging a lawsuit involving $42.4 million in frozen Tether tokens to advocate for the CLARITY Act.
Lummis stated in a September 10th post on X that Section 305 of the proposed act would shield issuers and exchanges from lawsuits related to temporary transaction holds. She encouraged senators to prioritize the bill upon Congress’s return.
The Tether lawsuit centers on $42.4 million in USDT that Tether froze across two Ethereum addresses. The freeze was reportedly initiated following an informal request from a U.S. Homeland Security Investigations agent in October 2025, according to two Thai nationals who filed suit in New York.
The plaintiffs claim the agent lacked a warrant or court order at the time of the request. In February 2026, a court issued a seizure warrant, directing Tether to burn the frozen tokens and transfer an equivalent amount of USDT to a government-controlled wallet.
Section 305 of the CLARITY Act is designed to establish temporary limits on certain law-enforcement requests, permitting crypto companies to delay transactions for up to 30 days, with potential extensions.
Lummis noted that Democrats were involved in shaping the bill and urged their support, arguing that the provision could offer enhanced legal protection for companies complying with government requests to restrict suspicious funds.
Source: Coin Edition
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