CLARITY Act Draft Proposes Rewards for White-Hat Hackers Reporting Vulnerabilities

Senate draft of CLARITY Act introduces provision to reward ethical hackers for disclosing security flaws, aiming to bolster digital asset infrastructure protection ahead of malicious exploitation.

Woofun AI reports that the latest Senate draft of the CLARITY Act includes a provision designed to incentivize ethical hackers, known as "white-hat" hackers, to responsibly disclose cybersecurity vulnerabilities. This measure seeks to approve rewards for individuals who identify and report security flaws, with the objective of enhancing the protection of digital asset infrastructure before malicious actors can exploit these weaknesses. The clause integrates recommendations from former CFTC chairman J. Christopher Giancarlo, a longstanding advocate for innovation in digital assets and market resilience.