a16zcrypto policy and regulatory head Miles Jennings said the U.S. Senate should move forward with the Digital Asset Market CLARITY Act, arguing that the risks exposed by the FTX collapse were straightforward and remain insufficiently addressed in today’s crypto market structure. In his view, the sector still lacks protections common in traditional financial markets, especially around customer asset segregation, custody, and disclosures.
Jennings said the CLARITY bill would require digital asset brokers, dealers, and exchanges to adopt measures including customer asset segregation, qualified custody, disclosure standards, and restrictions on insider trading. He also said the bill would define the regulatory boundary between the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission.
He warned that the stakes are now larger than they were during FTX’s failure. With stablecoin supply already above $300 billion and tokenized asset market value above $30 billion, Jennings said a failure by the Senate to act this time could leave the market exposed to a future collapse with consequences greater than those seen in the FTX episode.
According to Odaily, a16zcrypto policy and regulatory head Miles Jennings wrote that the U.S. Senate should push forward the Digital Asset Market CLARITY Act.
Jennings said the risks exposed by the FTX collapse — including customer asset segregation, custody, and disclosures — were not complicated. He argued that the current digital asset market still lacks safeguards comparable to those used in traditional financial markets.
What the bill would cover
He said the CLARITY bill would require digital asset brokers, dealers, and exchanges to implement customer asset segregation, qualified custody, disclosures, and insider trading restrictions. The measure would also clarify the regulatory boundary between the U.S. Securities and Exchange Commission, or SEC, and the Commodity Futures Trading Commission, or CFTC.
Warning over the scale of the next crisis
Jennings also warned that with stablecoin supply already above $300 billion and the market value of tokenized assets above $30 billion, the impact of the next market collapse could exceed the fallout from FTX if the Senate does not act this time.
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