This episode discusses a comprehensive legal analysis of the proposed Digital Asset Market CLARITY Act of 2025, which aims to fundamentally reform U.S. digital asset regulation. The core of the Act is establishing a function-based regulatory framework that shifts authority from the current ad hoc system to clear statutory standards overseen jointly by the SEC and CFTC. Key features discussed include creating definitions for digital commodities and investment contract assets, establishing objective decentralization thresholds, and mandating strict custody and bankruptcy protections for customer assets. The analysis also covers the Act's phased implementation timelines, its dedicated regime for stablecoins, and its goal of positioning the U.S. competitively against international frameworks like the EU’s MiCA.

References

Oranburg, Seth, The CLARITY Act: Explaining and Analyzing How Congress Will Transform Digital Asset Markets (June 11, 2025). 45 Review of Banking and Financial Law ___ (forthcoming Spring 2026), Available at SSRN: https://ssrn.com/abstract=5288934 or http://dx.doi.org/10.2139/ssrn.5288934

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This episode is based on the references listed above and was generated using Notebook LM and potentially other AI tools. While I have reviewed the content for accuracy, it may still contain errors, inaccuracies, or omissions. Neither the producers nor any affiliates accept liability for any damages or losses arising from the use or interpretation of this content.