Clarity Act Proposes Consumer Protection Rules for Centralized Digital Asset Platforms

Odaily Odaily Planet Daily Report: The Clarity Act will establish clear federal rules for centralized platforms, brokers, dealers, and custodians used by consumers to buy, sell, and hold digital assets. These rules cover registration, supervision, disclosure, custody, asset segregation, market integrity, conflicts of interest, fraud prevention, and bankruptcy.

Nearly four years after the collapse of FTX, many consumers are still unable to confirm where their assets are held, whether those assets are separated from platform funds, or how their assets would be handled if the company fails. Regulators, bankruptcy courts, and law enforcement agencies subsequently addressed these issues.