Senate leaders unveil the final draft of the Digital Asset Market Clarity Act, setting new rules for digital asset markets and ethics.
Senate leaders Lummis, Boozman and Scott have released the final text of the Digital Asset Market Clarity Act, outlining new regulatory and ethical standards for digital asset markets.
Key Provisions of the Final Draft
The Act introduces a comprehensive framework that requires digital asset platforms to register with the Securities and Exchange Commission and to implement robust anti‑money‑laundering controls.
It also mandates clear disclosure of fees, custody arrangements, and the underlying technology used by each platform, aiming to increase transparency for investors.
Ethical Standards and Consumer Protection
Under the new rules, firms must adopt a code of conduct that prohibits conflicts of interest and ensures that fiduciary duties are upheld when advising clients on digital assets.
The Act further requires independent audits of smart contract code and mandates that any material changes to a platform’s operations be reported to regulators within 30 days.
Implementation Timeline
The legislation provides a phased rollout: registration requirements take effect six months after enactment, while the full suite of consumer‑protection measures will be enforced after a twelve‑month transition period.
- Registration with the SEC within six months
- Mandatory AML/KYC procedures
- Annual independent audits of smart contracts
- Disclosure of fees and custody details
Industry groups have expressed both support for the increased clarity and concern over the potential compliance costs for smaller firms.
"This legislation provides much‑needed certainty for investors while protecting the integrity of the market," said a senior official at the Financial Industry Regulatory Authority.
The final text of the Digital Asset Market Clarity Act is available on Senator Lummis’s official website.