It said it would be clearer about who funded ads and to what end, especially those pushing a political agenda.
The company, like several tech firms, is keen to show it can self-regulate after it was found that Russian-backed groups were exploiting its ad platform.
Several key senators, from both sides of the US political divide, have backed measures clamping down on online ads.
The Honest Ads Act would regulate ad sales on social networks, search engines, websites or apps that have more than 50 million US visitors each month for the majority of months in a year.
