The proposed Clarity Act seeks to redefine the regulatory landscape for cryptocurrencies by dividing oversight responsibilities between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). According to NS3.AI, the legislation aims to classify memecoins as digital collectibles and introduce new rules for transparency, risk disclosure, and market oversight. If enacted, these measures could facilitate greater institutional participation in the crypto market. However, the sector remains highly speculative and susceptible to significant losses.