Woofun AI reports that the Clarity Act establishes federal standards for centralized platforms, brokers, dealers, and custodians facilitating digital asset transactions. The legislation mandates requirements for registration, supervision, disclosure, custody, asset segregation, market integrity, conflict management, fraud prevention, and bankruptcy procedures.

Nearly four years following the FTX collapse, many consumers remain uncertain about asset location, segregation from platform funds, and failure protocols. Regulators, bankruptcy courts, and law enforcement have subsequently moved to address these unresolved issues.