Odaily Planet Daily reports that Miles Jennings, Head of Policy and Regulation at a16z crypto, wrote that the U.S. Senate should advance the Digital Asset Market CLARITY Act. Jennings stated that the risks exposed by the FTX collapse—such as client asset segregation, custody, and disclosure—are not complex, yet the current digital asset market still lacks regulatory safeguards comparable to those in traditional financial markets. The CLARITY Act would require digital asset brokers, dealers, and exchanges to implement client asset segregation, qualified custody, disclosure requirements, and insider trading restrictions, while clearly defining the regulatory boundaries between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Miles Jennings warned that if the Senate does not act now, given that stablecoin supply has exceeded $300 billion and the market capitalization of tokenized assets has surpassed $30 billion, the next market crash could have a greater impact than the FTX event.