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CLARITY Act Could Clarify Crypto Token Regulations

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The CLARITY Act proposes to clarify regulations for crypto tokens in the US. The bill aims to determine when a token counts as an investment or a commodity, which would impact who regulates it and what rules apply.

Currently, U.S. regulators have struggled with this distinction for over a decade. The answer determines what creators must disclose and the rules they must follow.

The CLARITY Act's passage could significantly affect Bitcoin, Ethereum, and XRP, as these tokens are often used as investments or commodities in different contexts.

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