Cardano Classified Under Clarity Act as a "Mature" Category of Blockchain Systems
The Clarity Act 2025, officially passed by the U.S. House of Representatives, is set to establish a clear regulatory framework for digital assets, including blockchain tokens. This significant legislative step aims to clarify the classification of these tokens as either securities or commodities, resolving a long-standing regulatory ambiguity that has affected the crypto industry.
As of mid-July 2025, the Clarity Act has been passed, with key provisions defining critical terms related to blockchain and digital assets. The Act delineates jurisdiction between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), establishing which body regulates which kind of digital asset.
The Act introduces new definitions such as “digital asset,” “blockchain protocol,” “mature blockchain system,” and “digital commodity.” It creates a new regulatory regime specifically for “digital commodities” — digital assets tied intrinsically to blockchain systems. Importantly, it excludes certain digital assets—including those offering voting or economic rights related to decentralized governance—from being presumptively classified as securities.
The Clarity Act provides blockchains a pathway to certify their decentralized status, which directly influences how their associated tokens are classified and regulated. By acknowledging and protecting tokens that confer decentralized governance rights and economic participation without presuming them as securities, the Act supports core decentralization elements of blockchain ecosystems such as Cardano and Ethereum, which emphasize decentralized governance and participation.
This regulatory clarity can reduce legal risk for projects built on Cardano and Ethereum by potentially shielding their native tokens from stringent SEC securities regulations if they meet the Act's decentralization criteria. Moreover, the Act’s recognition of “digital commodities” as a distinct category may allow many tokens on these blockchains to be regulated under the more commodity-focused regime of the CFTC, which is generally viewed as less restrictive than SEC securities regulation. This could foster innovation and maintain decentralized governance structures on these platforms.
Cardano stands out from other blockchains, including Ethereum, due to its higher degree of decentralization. Its regulatory framework, combined with its decentralized structure, allows it to potentially handle regulatory changes more effectively, despite delays. The Ouroboros PoS protocol developed by Cardano is more decentralized than Ethereum's initial Proof of Work (PoW) protocol. More than 20% of the total ADA tokens are not held in the same possession, contributing to Cardano's decentralization.
Despite regulatory delays, Cardano's decentralized structure and peer-reviewed consensus mechanism position it well to adapt to potential regulatory changes. The U.S. SEC's conventional approach has been to control the use of tokens through centralized control, which the Clarity Act aims to change. Delays in the Clarity Act's passage may impact investor confidence and adoption of Cardano, but the technical advantages of Cardano remain regardless of regulatory delays.
In conclusion, the Clarity Act 2025 marks an important step in balancing regulatory oversight with the preservation of blockchain decentralization principles in major ecosystems like Cardano and Ethereum. It fosters regulatory certainty while potentially encouraging innovation on decentralized blockchain platforms.
- The Clarity Act 2025, passed in mid-July 2025, introduces new definitions such as "digital asset," "blockchain protocol," and "digital commodity," and establishes a clear regulatory framework for blockchain tokens.
- The Act delineates jurisdiction between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), clarifying their roles in regulating different types of digital assets.
- The Act creates a new regulatory regime specifically for "digital commodities" — digital assets tied intrinsically to blockchain systems, and it excludes certain digital assets from being presumptively classified as securities.
- By acknowledging and protecting tokens that confer decentralized governance rights and economic participation, the Act supports core decentralization elements of blockchain ecosystems like Cardano and Ethereum.
- The regulatory clarity provided by the Clarity Act can reduce legal risk for projects built on Cardano, potentially shielding their native tokens from stringent SEC securities regulations if they meet the Act's decentralization criteria.
- Cardano stands out from other blockchains like Ethereum due to its higher degree of decentralization, which allows it to potentially handle regulatory changes more effectively, despite delays.
