Legislation aimed at providing clearer rules and regulations within a specific industry or market.
A Clarity Act refers to a piece of legislation designed to simplify and provide definitive guidelines for participants within a particular sector, often one that is experiencing rapid innovation or regulatory ambiguity. The goal is to reduce uncertainty, foster growth, and protect investors by establishing a more predictable legal and operational framework. The approval of such an act can significantly impact market participants by clarifying their rights, obligations, and the overall operational landscape.