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The Clarity Act would add federal consumer protections for crypto users

The proposal would set rules for digital asset platforms covering registration, disclosure, custody standards, asset segregation, and bankruptcy.

Reported · Written up by our desk · Regulation

CoinDesk says the U.S. still lacks a regulatory framework that adequately protects digital asset investors and consumers, a gap highlighted by the collapse of FTX nearly four years ago.

The article argues that the proposed Clarity Act would address what went wrong for customers, including uncertainty around where assets were held, whether property was segregated from a platform’s funds, and what would happen if a firm failed.

According to CoinDesk, the bill would establish clear federal rules for centralized platforms, brokers, dealers, and custodians. It would cover registration and supervision, disclosures, custody requirements, segregation of customer assets, market integrity, conflicts of interest, fraud prevention, and processes in bankruptcy.

The piece describes the bill as crypto market structure legislation, saying that beyond market structure, the core goal is enforceable accountability and regulatory visibility before a crisis occurs, so consumers do not have to rely on regulators and bankruptcy courts to sort out failures after the damage is done.

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