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CLARITY Act: A Major Step in Regulating the Cryptocurrency Market in the United States

The CLARITY Act is an American law aimed at providing a clear regulatory framework for the regulation of digital currencies in the United States. Here are the main points of the law and its impact:

Main Points of the Law

- *Clear Definitions*: The law provides clear definitions for classifying digital assets, reducing ambiguity in regulation.

- *Role of the Commodity Futures Trading Commission (CFTC)*: The law designates the CFTC as the primary regulatory body for digital commodities, while the Securities and Exchange Commission (SEC) retains its powers to regulate assets classified as securities.

- *Specific Compliance Pathways*: The law offers specific compliance pathways to reduce inconsistent application of regulations.

- *Protection of Direct Transactions*: The law protects direct transactions between individuals and self-custody of assets.

- *Exemptions for Decentralized Finance (DeFi)*: The law exempts certain DeFi activities from traditional registration requirements.

Impact of the Law

- *Enhancing Trust*: The law may enhance trust in the digital currency market by providing a clear regulatory framework.

- *Encouraging Investment*: The law may encourage investment in the digital currency market by providing protections for investors and ensuring transparency.

- *Promoting Stability*: The law may contribute to promoting the stability of the digital currency market by establishing clear rules for cryptocurrency trading.