ClarityAct plans to establish consumer protection rules for digital asset centralized platforms

ClarityAct will establish clear federal rules for centralized platforms, brokers, dealers and custodians that consumers use to buy, sell and hold digital assets, covering matters such as registration, supervision, disclosure, custody, asset isolation, market integrity, conflicts of interest, fraud prevention and bankruptcy. After FTX collapsed nearly four years ago, many consumers were unable to confirm where assets were kept, whether they were separated from platform funds, and how their assets would be handled if the company failed. Regulators, bankruptcy courts and law enforcement agencies then address relevant issues.