# Fischer Says Proposed CLARITY Act Would Not Have Prevented Binance Hack

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/regulation/45180
Published: 2026-10-30T22:19:34.000Z
Updated: 2026-10-30T22:19:34.000Z
Section: Regulation

> Amanda Fischer says mixers and pseudonymous transfers can help stolen funds move. Binance’s Oct. 30 update put on-chain freezes at about $3 billion.

Amanda Fischer, Better Markets’ chief operating officer and policy director, argued that the proposed Digital Asset Market Clarity Act would not have prevented the Binance hot-wallet incident, raising questions about how U.S. rules address stolen crypto.

“Crypto doesn’t belong in the regulated financial system,” Fischer wrote. She argued that pseudonymous transfers, mixers and round-the-clock trading can make stolen funds easier to move.

Binance said its hot wallets were compromised at about 4:05 p.m. ET Oct. 29 (8:05 p.m. UTC), with estimated losses of $6.3 billion in token assets. In an update posted at 3:33 p.m. ET Oct. 30 (7:33 p.m. UTC), the exchange said about $3 billion had been frozen on-chain. Binance also said it had set aside more than $6.34 billion to cover losses, including $5 billion in affected assets. The update gave no final net-loss figure and did not say how much of the frozen amount had been returned.

Fischer characterized the GENIUS Act as allowing stablecoin issuers to freeze funds only under court orders. The law, signed by President Donald Trump on July 18, 2025, applies to permitted payment stablecoin issuers. It requires them to maintain technical capabilities and procedures to block, freeze or reject certain transactions that violate federal or state law, and to comply with lawful orders from courts or authorized federal agencies.

The Senate-reported CLARITY Act proposal would protect covered firms from private lawsuits when they voluntarily place temporary holds in good faith. The provision applies when a firm has a reasonable basis to link a transaction to a legal violation or receives a qualified written request from an agency; it does not require a hold in every case. The Senate rejected cloture on a motion to proceed by a 49-50 vote Sept. 15, a procedural vote rather than a decision on final passage.