a16z Urges Senate to Advance Clarity on Digital Asset Regulation

a16z crypto's Head of Policy & General Counsel Miles Jennings is urging the Senate to advance the CLARITY Act, citing its potential to address regulatory gaps exposed by the FTX collapse.

Jennings argues that Congress has yet to establish a comprehensive federal framework for spot digital asset markets and that the bill would provide stronger protections for customers of digital asset intermediaries through measures such as independent custody arrangements, segregation of customer assets, and additional disclosure requirements.

The CLARITY Act would establish a federal market-structure framework for digital assets while dividing regulatory responsibilities between the SEC and CFTC. Jennings disputes arguments that the legislation would amount to deregulation, pointing out that parts of the digital asset market currently operate outside the traditional federal securities framework.