Clarity Act Proposes Federal Consumer Protection Rules for Centralized Crypto Platforms

According to ChainCatcher, the Clarity Act will establish federal rules for centralized platforms, brokers, dealers, and custodians involved in the buying, selling, and holding of digital assets. The proposed rules cover registration, regulation, disclosure, custody, asset segregation, market integrity, conflicts of interest, fraud prevention, and bankruptcy provisions.

The proposal follows the FTX collapse four years ago, after which many consumers were unable to confirm asset locations, whether assets were separated from platform funds, or how their holdings would be handled in case of company failure.