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A 20% RULE COULD HELP DEFINE U.S. CRYPTO FOR YEARS. The CLARITY Act is heading toward a key Senate cloture vote on September 15. But the most interesting part may be how it tries to measure decentralization. Here’s why 👇 WHO REGULATES THE TOKEN? The proposed framework could create clearer categories: CFTC → Digital commodities SEC → Securities Stablecoins → Separate framework That classification could reshape the U.S. crypto market. THE 20% TEST One important concept is an insider-control threshold. The proposal includes a 20% test as part of determining whether a token/network can qualify for digital-commodity treatment. But the number itself isn’t the whole story. THE BIGGER IDEA: DECENTRALIZATION Regulators have struggled with a basic question: How do you legally measure decentralization? The CLARITY Act attempts to turn that concept into something more measurable. BEGINNER VERSION Think of it as asking: “Who really controls this network?” If control is sufficiently distributed, the asset could potentially receive digital-commodity treatment. Too much insider control could mean greater securities-law exposure. WHY IT MATTERS Clearer classification could influence: • Token launches • Exchange listings • Governance • Compliance costs • Market structure • Institutional products The rules can shape how projects are designed from day one. PROFESSIONAL VIEW The important signal isn’t simply 20%. It’s the attempt to make decentralization a regulatory variable. That could change token distribution, governance structures and incentive design. IMPORTANT CAVEAT September 15 would be a procedural cloture vote not final passage. The final impact depends on: • Final text • Amendments • Asset definitions • Transition rules • SEC/CFTC implementation Details matter. BIGGEST LESSON Crypto regulation isn’t only about whether tokens are legal. It’s increasingly about how tokens are designed. And if the rules become predictable, capital can build around them. The next major crypto catalyst may not be price. It may be clarity.