#CryptoClarityAct The #CryptoClarityAct is a proposed U.S. legislative initiative aimed at providing clear regulatory guidelines for digital assets, such as cryptocurrencies and tokens, to foster innovation while ensuring investor protection and market integrity.

๐Ÿ” Key Goals of the Crypto Clarity Act:

Define Digital Assets Clearly

It aims to clearly differentiate between securities and commodities in the crypto space (e.g., when is a token considered a security vs. a commodity).

Clarify Regulatory Jurisdiction

It proposes to clarify the roles of the SEC (Securities and Exchange Commission) and the CFTC (Commodity Futures Trading Commission), avoiding overlapping or contradictory enforcement actions.

Protect Innovation

The act is designed to support crypto startups and blockchain developers by removing uncertainty, which currently deters investment and innovation in the U.S.

Establish Safe Harbor Provisions

It may include โ€œsafe harborโ€ protections for projects during initial development stages โ€” especially for decentralized projects.

Ensure Consumer Protection

While supporting innovation, the act also emphasizes disclosure, transparency, and protections against fraud for retail investors.

๐Ÿ›๏ธ Legislative Background

The Crypto Clarity Act has been supported by pro-crypto lawmakers such as:

Rep. Tom Emmer (R-MN)

Sen. Cynthia Lummis (R-WY)

Rep. Patrick McHenry (R-NC)

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