The Act seeks to bring legal clarity by establishing clear guidelines on which digital tokens are regulated as commodities (under the CFTC) and which fall under the SEC (securities). It defines criteria—like decentralization and blockchain maturity—to classify assets and streamline oversight. The result: token issuers, exchanges, brokers, and dealers gain a defined path for compliance. It also introduces consumer protections (e.g., segregation of customer funds), while enabling a structured transition: assets built on mature blockchains can move to commodity status. Overall, it aims to reduce ambiguity, support innovation, and protect users .
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Why it matters:
🎯 Ensures developers, investors, and platforms know which regulator governs them—minimizing legal uncertainty .
Incentivizes builders to develop towards decentralization, offering a regulatory reward for “mature blockchains” .
Reinforces consumer safeguards, such as keeping customer assets separate from firms’ own funds .