Senate Banking advancing CLARITY is real and it matters.
But "landmark moment for tokenization" is half-right, and the half that's wrong is the half worth saying.
(And note the tracker below still reads "Passed House", committee passage doesn't move that bar. That's exactly the point.)
CLARITY is a classification bill, not a tokenization bill. It tells you which regulator and which rulebook. It does not write a new rulebook for RWAs.
First, what it does:
1) Resolves the security/commodity binary for crypto-native tokens.
A statutory decentralization test instead of case-by-case enforcement.
Worth noting, Howey isn't abolished, and the SEC keeps authority over investment contract assets. The practice it ends is regulation-by-enforcement for covered tokens.
2) Confirms tokenized RWAs stay securities.
Tokenization is a delivery method, not a new asset class. Same disclosures as the off-chain version
3) Removes a classification tail risk that was quietly suppressing institutional allocation.
Now, what it doesn't do:
1) Create dedicated rules for tokenized treasuries, credit, or funds. Those were always securities and remain so.
2) Build anything. It's a demand-side catalyst, not supply-side.
3) Become law just yet. Two Senate versions still to merge, then House reconciliation, ethics provision unresolved, 60 floor votes far from locked.
Important to note, second-order read:
Capital flows to the easy bucket first. Treasuries, MMFs, the clearest-classified instruments.
The hard bucket (structured credit, fixed-rate, anything where the wrapper does something the underlying doesn't) benefits indirectly, through a deeper high-quality collateral base, not through new rules.
"Same rules, better rails" is the actual unlock.
Still a big deal. Just not the deregulation the headline wants it to be.
Today, Mastercard, @OndoFinance, Kinexys by @JPMorgan, and @Ripple successfully completed a landmark transaction connecting a public blockchain with interbank settlement rails.
Together, weβre laying the groundwork for 24/7 global markets that never close.
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There was no federal income tax the first 137 years in America was a country.
Everything changed in 1913 with The Federal Reserve Act & 16th Amendment (Income Tax).
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