US lawmakers, including Reps. Tom Emmer (R-MN) and Darren Soto (D-FL), are reintroducing the Securities Clarity Act, aimed at clarifying the status of digital assets.📜
They’ve coined a new term, “investment contract asset,” to distinguish these assets from the securities they’re often associated with.
First introduced in 2020, the Act is designed to allow token projects, even those raising capital early on, to step outside the securities framework once they’re decentralized. This could prevent tokens from being constrained from their intended utility, a concern for token holders.
Crypto groups are hailing the bill’s distinction between an investment contract and the underlying asset. Perianne Boring, head of the Chamber of Digital Commerce, lauds the Securities Clarity Act as crucial, offering needed certainty by clarifying the difference between an investment contract and digital assets sold or transferred under such a contract. 👏