The Securities Clarity Act Is Simple and Logical (and Bad News for Lawyers Like Me)

The Securities Clarity Act Is Simple and Logical (and Bad News for Lawyers Like Me)


On Sept. 24, 2020, U.S. Rep. Tom Emmer (R-Minn.) introduced a bill called the Securities Clarity Act “to provide a path to regulatory certainty for digital assets and other emerging technologies under securities law.” Unlike previous attempts at crypto-friendly federal legislation, I believe the Securities Clarity Act deserves support from the crypto community at large, for the following reasons.

The Securities Clarity Act does two things:

1. It defines an “investment contract asset” as:

an asset, whether tangible or intangible, including assets in digital form— (A) sold or otherwise transferred, or intended to be sold or otherwise transferred, pursuant to an investment contract; and (B) that is not otherwise a security [under section 2(a)(1) of the Securities Act of 1933].

2. It includes the following language in all applicable legislative definitions of a security:

The term “security” does not include an investment contract asset.

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