CryptoClarityAct CryptoClarityAct

The "Crypto Clarity Act" is a U.S. legislative proposal aimed at clarifying the regulation of digital assets by defining their types and identifying the regulatory bodies responsible for each type. This law aims to provide regulatory clarity for companies and investors in the digital currency space by determining whether a digital asset is considered a security or a commodity.

Key aspects of the law:

Type Identification:

The law distinguishes between three main types of digital assets:

Digital Commodities: such as Bitcoin, where decentralization is clear and governance is open.

Restricted Digital Assets: semi-centralized projects in transition or with mixed governance.

Digital Securities: assets that meet the Howey Test criteria and resemble traditional securities.

Identifying Regulatory Bodies:

The law assigns regulatory responsibility for digital commodities to the Commodity Futures Trading Commission (CFTC), while digital securities are subject to oversight by the Securities and Exchange Commission (SEC).

"Mature Blockchain Market" System:

The law distinguishes between the "Mature Blockchain Market" where decentralization is evident, and the "Immature Blockchain Market" which requires further regulatory engagement.