Senator Cynthia Lummis said a lawsuit against Tether over its freeze of $42.4 million in USDT highlights a dangerous gap in efforts to combat illicit finance in crypto. Lummis said exchanges and issuers currently face legal risk if they freeze stablecoins over suspected illegal activity. She said Section 305 of the CLARITY Act would give issuers and exchanges the authority to halt illicit financial activity without civil liability.