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.