#CryptoClarityAct What is the CLARITY Act?

Embodied in the bill H.R. 3633, the CLARITY Act is a comprehensive bipartisan bill aimed at eliminating uncertainty about when a digital asset is a security and when it is a commodity, and clearly delineating the powers between the SEC and CFTC

• Digital commodity — an asset "that is intrinsically linked to the blockchain" and whose value depends on the use of that network

• Investment contract asset — a digital commodity that is primarily sold as an investment contract. Importantly: the "investment contract asset" is not considered a security when resold in secondary transactions

⚖️ Delineation of powers between agencies

• CFTC will have jurisdiction over the bulk of digital commodities, including spot trading, exchanges, brokers, dealers

• SEC retains control over primary offerings that involve expectations of profit based on the efforts of others; also regulates alternative trading systems (ATS) and national exchanges that trade tokens up to a certain threshold

Jurisdiction is now based not on the name or method of selling the token, but on its characteristics: a sufficient degree of decentralization (mature blockchain) transfers the asset under CFTC!