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The "CLARITY" Act may drive institutional investors to get on board the digital asset market.
On July 14, Benchmark Investment Company analyst Mark Palmer pointed out in a recent research report that the long-awaited "CLARITY" Act could become a turning point for the digital asset market, expected to drive institutional investors to get on board on a large scale. The Act aims to establish a clear regulatory framework for digital assets in the United States, clearly categorizing crypto assets as either commodities or securities.
Benchmark stated in a report on Monday that this legislation could provide much-anticipated regulatory certainty for traditional financial institutions such as asset management companies, hedge funds, and banks. Due to uncertainty in legal compliance, many institutions have remained on the sidelines. The report noted that although the current SEC Chairman Paul Atkins leads the commission with a "constructive attitude" towards crypto assets, the absence of a written regulatory framework means that if a government opposed to crypto assets were to emerge in the future, it could quickly overturn any crypto-friendly policies established by the agency.
The report states that this policy uncertainty makes it difficult for institutions planning to develop digital asset businesses to make long-term plans. If the bill is passed, it will eliminate most of the uncertainty and lay a stable foundation for broader industry participation.