#CryptoClarityAct The CLARITY Act is a U.S. bill aimed at regulating the cryptocurrency market and clarifying the regulatory roles of both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
💫Main Objectives:🤔🤔🤔
◀️Classification Definition: The law specifies when a digital currency is classified as a "commodity" (subject to CFTC) and when it is classified as a "security" (subject to SEC). This addresses the regulatory ambiguity that has hindered the market.
◀️Consumer Protection: The law includes measures to protect investors and users in the cryptocurrency market.
◀️Encouraging Innovation: Aims to provide a clear regulatory framework that encourages innovation and development in the Web3 and fintech space.
◀️Regulatory Clarity: Reduces "regulation by enforcement" (i.e., enforcing rules through legal actions rather than clear legislation) and provides specific compliance pathways.
💫Key Highlights of the Law:🤔🤔🤔
♦️Gives the Commodity Futures Trading Commission (CFTC) primary authority over "digital commodities" (tokens on-chain), including exchanges, brokers, and spot markets.
♦️Retains the authority of the Securities and Exchange Commission (SEC) over "investment contract assets" (which are considered securities).
♦️Allows projects to qualify as "mature blockchains," reducing oversight if they are decentralized enough.
♦️Affirms individuals' right to self-custody of digital wallets.
♦️Establishes a safe harbor of $75 million for the issuance of digital commodities, with regular disclosure requirements.
♦️Aims to override conflicting state laws to ensure national regulatory consistency.
💫Potential Impact:🤔🤔🤔
If ultimately passed, the CLARITY Act is expected to significantly reshape the regulation of digital currencies in the United States, providing much-needed clarity for projects, exchanges, and investors, and encouraging more institutional investment in the sector😇😇😇.
