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How The CLARITY Act Could Reshape Crypto’s Secondary Markets

The CLARITY Act is progressing through the US Senate, aiming to separate a token's original issuance transaction from its secondary-market status. If passed, tokens resold by unrelated parties would transition from 'investment contract assets' to digital commodities under CFTC jurisdiction, providing a clearer legal framework for exchanges and custodians while imposing mandatory registration and compliance requirements.

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Why It Matters

It addresses a decade-long ambiguity regarding whether tokens remain securities in secondary markets, potentially enabling US-based platforms to list and custody assets with more legal certainty.