U.S. Senator Cynthia Lummis has released an updated draft of the CLARITY Act that would require digital commodity exchanges, brokers, and dealers to segregate customer assets. The proposal would also bar platforms from treating customer funds and assets as their own property. In addition, the draft would classify digital commodities held by a platform on behalf of customers as "customer property" in bankruptcy liquidation proceedings. That change is aimed at reducing the risk that users would be treated as general unsecured creditors if a platform enters bankruptcy. The update centers on custody and bankruptcy treatment for customer-held assets in the digital commodity market.
According to ChainCatcher, U.S. Senator Cynthia Lummis has released an updated draft of the CLARITY Act that would require digital commodity exchanges, brokers, and dealers to segregate customer assets. The draft would also prohibit platforms from using customer funds and assets as their own property.
The proposal would also treat digital commodities and other assets held by platforms for customers as "customer property" in bankruptcy liquidation proceedings, reducing the risk that users would be classified as general unsecured creditors.
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