#CryptoClarityAct The CLARITY Act, or Digital Asset Market Structure Clarity Act, aims to provide regulatory clarity for the cryptocurrency industry in the United States. Here are its key aspects ¹ ²:

Regulatory Oversight

- *SEC vs. CFTC*: The Act divides regulatory oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The SEC will oversee tokens that meet securities criteria, while digital commodities will fall under the CFTC's jurisdiction.

- *Digital Asset Classification*: The Act defines digital assets based on their functional characteristics, categorizing them as digital commodities, restricted digital assets, or permitted payment stablecoins.

Key Provisions

- *Digital Commodities*: Decentralized digital assets that don't confer financial rights or profits will be classified as commodities, falling under CFTC jurisdiction.

- *Restricted Digital Assets*: Digital assets representing investment contracts or financial rights will remain under SEC jurisdiction.

- *Permitted Payment Stablecoins*: Fiat-redeemable digital assets designed for payment or store of value, typically backed 1:1 by US dollars or high-quality liquid assets.

- *Certification Pathway*: Token issuers can seek regulatory clarity by obtaining a formal determination from either the SEC or CFTC on whether their asset qualifies as a digital commodity or restricted digital asset.

- *Safe Harbor*: A safe harbor provision allows token issuers to self-certify and operate under provisional treatment, subject to agency review.

Impact

- *Regulatory Clarity*: The Act provides long-awaited clarity for the crypto industry, enabling predictable compliance paths and reducing legal uncertainty.

- *Investor Protection*: The Act strengthens investor protections and market integrity while encouraging domestic innovation.

- *International Alignment*: The Act aligns the US with other major jurisdictions that have introduced dedicated frameworks for digital assets.