Part 3/8:
The legislation introduces a dual registration system allowing crypto platforms to opt for registration with either the CFTC or the SEC, based on the types of assets they handle, whether they are digital commodities like Bitcoin or securities. This proposed framework aims to deliver the clarity that entrepreneurs, investors, and consumers demand, as put forth by Representative Hill.
Significantly, the Clarity Act outlines clear disclosure and compliance requirements for crypto developers and intermediaries. Entities will have to adhere to stringent project disclosures, segregate customer funds, and implement measures to mitigate conflicts of interest.