Svmuu News: The U.S. Senate Banking Committee has published an article interpreting and clarifying seven common misconceptions about the CLARITY Act, which primarily include: 1. The bill does not deviate from existing securities laws but is based on well-established securities law principles to clarify which digital assets qualify as securities and which as commodities. 2. The bill is fundamentally an investor protection measure that combats fraud, manipulation, and abuse through clear rules, aiming to prevent a recurrence of FTX-style risk events. 3. It fills regulatory gaps by clearly delineating the regulatory authorities of the SEC and the CFTC and establishing a joint advisory committee to coordinate rules, while introducing targeted anti-circumvention provisions to reduce arbitrage opportunities. 4. It requires key intermediaries to fulfill anti-money laundering and counter-terrorist financing obligations, and strengthens sanctions compliance and the Treasury Department’s enforcement authority. 5. The bill does not allow DeFi to become a conduit for illicit funds; it emphasizes “targeted action against illegal activities.” It requires centralized intermediaries interacting with DeFi protocols to implement risk management standards, while establishing specific rules for intermediaries that are not truly decentralized, thereby protecting the code and innovation itself. 6. The rules explicitly protect the rights of software developers and users to self-custody. Developers who do not control user funds and merely publish or maintain code are not considered financial intermediaries, while regulators retain the ability to intervene in response to genuine risks. 7. The core objectives are to strengthen national security, protect investors, and promote compliant innovation under clear rules, rather than creating regulations “tailored” for specific industries.