#CryptoClarityAct Here's a rewritten, simplified version of the **Crypto CLARITY Act** overview for easy understanding:
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### 🪙 **What is the Crypto CLARITY Act?**
The **Crypto CLARITY Act** (short for **“Digital Asset Market Structure Clarity Act”**) is a new U.S. law designed to bring **clear rules** to the crypto industry. It passed the **House of Representatives** in July 2025 and is now being reviewed by the **Senate**.
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### 🎯 **Main Goals**
1. **Define which agency controls what:**
* **CFTC** (Commodities Futures Trading Commission): Controls digital **commodities** like Bitcoin.
* **SEC** (Securities and Exchange Commission): Handles **security-like tokens**, especially early-stage ones.
2. **Set rules for stablecoins**:
* Only stablecoins that are 100% backed by cash (or cash-like assets) and redeemable 1:1 will be legal.
* These will be called **“Permitted Payment Stablecoins.”**
3. **Protect DeFi and Self-Custody**:
* Non-custodial DeFi protocols (those that don’t hold user funds) will be **exempt** from many rules.
* Users will keep the **right to self-custody** their crypto (i.e., hold their own keys/wallets).
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### 📜 **What’s in the Law?**
| Feature | Explanation |
| ------------------------ | ----------------------------------------------------------------------------------------------- |
| **Mature Blockchain** | If a project is fully decentralized, it may not be treated like a security. |
| **Fundraising Limit** | Projects can raise up to **\$75 million per year** under special conditions. |
| **Anti-Fraud Rules** | All platforms must follow strict anti-fraud and anti-money laundering laws. |
| **Federal Preemption** | Federal rules will override conflicting state crypto laws.
