The CLARITY Act: A Comprehensive Guide to U.S. Crypto Regulation

The CLARITY Act is a comprehensive bill aimed at regulating the cryptocurrency industry in the United States. The bill establishes a definitional framework that separates digital commodities from digital securities based on the 20 percent control threshold and the mature blockchain system test.

The bill codifies the secondary market reclassification principle, ensuring tokens traded on exchanges are treated as commodities regardless of their original issuance status. This is the Torres framework converted into federal statute.