This lawsuit highlights a dangerous gap in the fight against illicit finance in crypto. Right now, exchanges and issuers can’t freeze stablecoins if they suspect illicit activity without fear of a lawsuit. Section 305 of the Clarity Act gives issuers and exchanges the power they need to stop illicit finance in its tracks without having civil liability. https://www.coindesk.com/business/2026/09/02/tether-sued-over-usd42-4-million-usdt-freeze-allegedly-made-months-before-u-s-warrant(Senator Cynthia Lummis)