What trading opportunities will the CLARITY Act bring? 👀
1⃣ Basic Facts
-/ Timeline:
The CLARITY Act has passed the House of Representatives and is set for coordination and review in the Senate from August to September, aiming for Trump to sign it into effect by the end of September.
-/ Key Regulatory Changes:
From unclear transition from SEC to CFTC to automated, objective standards;
From 40 subjective factor tests to 7 measurable standards;
From no disclosure requirements to mandatory transparency;
From limited insider restrictions to enhanced consumer protection.
-/ Advantages of the New Regulatory Framework:
A control-based blockchain maturity model replaces the vague concept of "decentralization";
A clear path from SEC to CFTC regulation;
DeFi is exempt from securities brokerage regulations;
Protection of consumer asset self-custody rights.
2⃣ Impact
The combination of the CLARITY Act and the GENIUS Act forms a comprehensive regulatory framework for crypto assets in the U.S.
Given the reality of the U.S. as a world empire, this comprehensive regulatory framework for crypto assets is likely to become the global standard regulatory framework template.
In comparison to the EU's MiCA crypto regulatory framework, it perfectly embodies the legislative philosophy of freedom, conservatism, and leniency of the common law system.
This will make the U.S. an innovative hub and playground for the cryptocurrency industry.
For us secondary market investors, the CLARITY Act will create an unprecedented regulatory certainty premium, with projects that first meet the 7 standards enjoying valuation reassessment.
3⃣ Targets
🟢 High-compliance projects: ETH, ADA, XRP, XLM, HBAR, and blue-chip L1/DeFi like UNI, AAVE, MKR, expecting 30-80% returns;
🟡 Improving projects: Emerging L1/DeFi protocols that are decentralizing (self-seeking), with potential 100-300% returns;
🔴 High-risk projects: Projects with high centralization (self-seeking), recommended to avoid or short hedge.
4⃣ Strategies
1. Regulatory certainty arbitrage: Positioning in high-compliance projects in advance, targeting 30-100% returns;
2. Governance token special investment: Focus on allocating DAO governance projects, targeting 50-150% returns;
3. Emerging L1/DeFi protocol rotation strategy: Focus on decentralized improvement projects, targeting 100-500% returns;
4. Hedge protection strategy: Long compliance + short high-risk, targeting 20-60% stable returns.
5⃣ Rhythm
1. Preparation period (July-August): Establish monitoring systems, identify potential targets;
2. Preemptive period (August-September): Positioning in advance during Senate review;
3. Confirmation period (September-October): Regulatory premium realized after the bill passes;
4. Differentiation period (after October): Significant valuation differentiation between compliant and non-compliant projects;
That's all. DYOR!
The House of Representatives recently advanced a major new “market structure” bill with overwhelming bipartisan support (294 to 134, with 78 Democrats supporting). This bill, the Digital Asset Market Clarity Act or “CLARITY Act” (HR 3633) would establish a clear regulatory framework for digital asset markets. The bill now progresses to the Senate, which is working on its own version of market structure legislation that will be informed by CLARITY.
If passed, this bill will establish clear rules of the road for blockchain systems — ending the years of uncertainty that have stifled innovation, exposed consumers to harm, and favored profiteers embracing opacity over the entrepreneurs pursuing transparency. Like the Securities Act of 1933, which established investor protections and powered a century of U.S. capital formation, the CLARITY Act could be a generational law.
When our legal frameworks are designed to both foster innovation and protect consumers, America leads — and the world benefits. CLARITY is that kind of opportunity. While this legislation builds on the bipartisan momentum of last year’s FIT21 bill, CLARITY improves upon it in several key ways, which we outline below: covering what the builders need to know, and why this bill is crucial to aligning innovation, consumer protection, and U.S. national security.
Learn more about The CLARITY Act in the thread below.
And find the full post by @milesjennings & Aiden Slavin:
Focus on the following two in DAO governance targets:
$DEXE @DexeNetwork, which has trading pairs on Binance
$METADAO @MetaDAOProject, following the Futarchy paradigm
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