Bringing CLARITY to Crypto Commodities

The cryptocurrency industry has never lacked innovation, but it has experienced obstacles with regulatory clarity, particularly in the United States. Digital assets have been treated as commodities, securities, currencies , or sometimes all three by developers, entrepreneurs , and investors who have struggled to navigate this legal landscape for years.

The CLARITY Act of 2025 seeks to create a permanent logical framework for regulatory clarity in the current regulatory disorder.

The Digital Asset Market Clarity Act of 2025, the full title of this legislation, establishes a uniform legal structure for digital assets that may evolve. The Act recognizes that digital assets, which initially resemble investment contracts, may later qualify as digital commodities if they meet specified criteria. The Act extends beyond basic decentralization terminology and implements a comprehensive framework.

For a digital asset to be treated as a commodity for secondary trading and fall outside of certain securities regulations, the Act requires its underlying network to be certified as a "mature blockchain system". This network must be public, open-source, and run by a decentralized protocol or community. The Act clarifies the distinction between a security and a digital commodity. While a digital commodity cannot grant the holder an ownership interest in the revenues or profits of the issuer , it is not automatically classified as a security if it provides voting rights or economic rights related to the operation or governance of its own blockchain system. For example, a token could grant holders the ability to vote on network upgrades without being considered a security under this framework. Instead, its value should be derived from its use for access, participation, or utility within its network.

This distinction is important as it fits with the economic reality of digital assets, which often do not fit neatly into traditional categories. Bitcoin, for instance, was never issued through a centralized fundraiser and doesn't grant holders any claim on a company's earnings. Yet its value is undeniable. The CLARITY Act aims to acknowledge that not all tokens are created equal and that not all should be regulated as securities.

The legislation also addresses the lifecycle of a token. Many projects initially raise capital through token sales that meet the criteria of an investment contract. That's where SEC jurisdiction would typically apply.

Being formally recognized as a digital commodity under the CLARITY Act is not automatic; it requires proactive participation and demonstrable compliance. Under the CLARITY Act, an issuer may certify a blockchain as "mature" and decentralized by filing with the SEC, which has 60 days to rebut the claim. If effective, the asset is treated as a digital commodity for secondary trading, rather than a security, which places its spot market regulation under the CFTC. This filing clarifies the asset's status, shielding it from certain securities regulations, provided the project continues to meet the criteria. Notably, the Act imposes limitations on the influence of affiliated persons, such as founders, developers, and early investors, who must not retain a controlling interest in either the governance or the token supply. The Act also requires projects with blockchain systems that are not yet certified as mature to undergo continuous disclosure obligations, particularly in cases where an affiliated person remains materially involved in the protocol or network. These disclosures can include information about code updates, governance changes, token allocations, or other material events that could impact decentralization or network integrity.

In addition to addressing issuers, the Act also introduces tailored registration requirements for exchanges, brokers, custodians, and dealers operating in the digital commodity space. These entities must meet specific standards around disclosure, security, market integrity, and consumer protection.

Additionally, the Act specifies that a person will not be subject to regulation as a digital commodity intermediary simply for engaging in certain activities related to decentralized finance (DeFi). These excluded activities include developing, publishing, or distributing DeFi software, as well as other services incidental to the operation of a blockchain system, such as running a node, providing a user interface, or providing computational work.

Additional consideration is given to stablecoins. A definition of "permitted payment stablecoins" is carved out by the Act. These stablecoins must be redeemable on demand for a fixed amount of "monetary value," which includes a national currency, a bank deposit, or a credit union account, and must be issued by entities subject to federal or state financial supervision. While recognizing the usefulness of stablecoins in digital commerce, this clause reflects the rising concern over the systemic dangers that are presented by uncontrolled stablecoin issuers. One of the Act's most important contributions is its recognition that decentralization is not a binary state but a spectrum. It does not pretend that a project either is or isn't decentralized based on vague criteria. Instead, it offers measurable thresholds, limits on voting power, insider ownership, and administrative authority, to help regulators and market participants distinguish between platforms that are truly public goods and those that remain under private control.

There are important repercussions to consider. The CLARITY Act provides teams with a compelling reason to design for decentralization from the outset of the process. This not only establishes new standards for governance and transparency, but also provides a degree of legal certainty to the sector, which has been lacking for a considerable amount of time.

Additionally, it gives the Commodity Futures Trading Commission the authority to oversee a market that, by its very nature, is more analogous to a marketplace than a boardroom.

The CLARITY Act is a comprehensive piece of legislation that reflects an effective attempt to meet the digital asset market where it is, rather than where politicians wish it were.

For founders, developers, and investors alike, the message is clear: if you want to build a project that lasts, design with regulatory endpoints in mind. The CLARITY Act doesn't just tell you what to avoid; it also provides guidance on what to do. It tells you what to aim for.

About Chain

Chain is a blockchain infrastructure solution company that has been on a mission to enable a smarter and more connected economy since 2014. Chain offers builders in the Web3 industry services that help streamline the process of developing, and maintaining their blockchain infrastructures. Chain implements a SaaS model for its products that addresses the complexities of overall blockchain management. Chain offers a variety of products such as Ledger, Cloud, and NFTs as a service. Companies who choose to utilize Chain’s services will be able to free up resources for developers and cut costs so that clients can focus on their own products and customer experience. Learn more: https://chain.com.

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