[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Cardano YOD₳ [@JaromirTesar](/creator/twitter/JaromirTesar) on x 12.8K followers Created: 2025-07-18 08:00:08 UTC The CLARITY Act aims to clarify the regulation of digital assets, distinguishing between securities (regulated by the SEC) and commodities (regulated by the CFTC). The act provides criteria like blockchain maturity and decentralized control, but specific project classification is left to regulatory interpretation. As of now, no crypto project has been officially recognized as “mature” under the Act. Let's explore the maturity criteria and what the impact may be on some blockchains, including Cardano. This is a checklist of maturity criteria used to decide whether a digital asset counts as a commodity. ▪️Market Value and Development: The asset’s value must come from real-world use, not speculation, and the blockchain must be largely developed, not in an early stage. ▪️Functionality: The system must work well, letting users do things like transactions, deploy software, or participate in consensus (like mining or staking). ▪️Openness and Interoperability: The issuer must not impose unilateral limits on user activity, ensuring no centralized control. ▪️Programmatic Operation: It must run on clear, pre-set rules encoded in the system. ▪️Decentralized Governance: No single person or group can control it, and no one can hold more than XX% of the voting power to change how it works. ▪️Impartiality: No special permissions for anyone to change it, except for necessary updates like fixing errors, done through a decentralized process. ▪️Distributed Ownership: The issuer and related parties can't own or control more than XX% of the asset. For blockchain systems created before the enactment of the CLARITY Act, additional conditions apply: ▪️The system must have met all requirements as of January 1, 2020! ▪️At least XX% of the digital commodity must have been held by non-affiliated holders as of Jan 1, 2020, ensuring decentralized ownership. The following is just my take—final decisions on project maturity rest with the regulators. Most meme coins will likely be classified as securities because they lack real-world utility and exist primarily for speculative purposes. Dogecoin is an exception—it runs on its blockchain, supports transactions, and allows users to participate in consensus, giving it (some) functional value beyond speculation. Bitcoin and Dogecoin are essentially similar projects. Dogecoin is a fork of Litecoin, which is a fork of Bitcoin. L1 blockchains such as Bitcoin, Ethereum, and Cardano generally meet the requirements for real-world use and decentralized operation. Many other L1s as well. However, if a team holds private keys that control network upgrades or if the system relies on a centralized sequencer, it fails to meet the openness and programmatic operation criteria. This is a common issue among many L2s and even some L1s. Cardano has made significant progress toward decentralization. Its Genesis keys were burned in 2024, and on-chain governance was introduced. No entity can hold more than XX% of the coins and cannot have more than XX% of the voting power. In PoW networks, these are two different things, unlike PoS, where coins (mostly) represent voting power. Bitcoin and Ethereum do not have formal on-chain governance, but their permissionless consensus mechanisms likely satisfy the decentralization requirement. In contrast, networks like Solana or Sui may face scrutiny due to the economic barriers to block production—only entities holding large amounts of tokens can participate meaningfully, and if the team or VCs control a large portion of the supply, they can delegate influence at will. Bitcoin’s mining distribution is relatively decentralized, with no miner controlling more than XX% of the hashrate. The largest miner holds around 6%, although Foundry USA, a mining pool, has exceeded XX% of block production. This introduces a degree of centralization, especially since one entity can decide whether to upgrade nodes. Still, Bitcoin will likely pass regulatory review. XXXX% of ADA was sold in the public sale. Initially, XXXX% was in reserve (which is gradually released into circulation through staking). The reserve was controlled by Genesis keys. Cardano also appears to meet the decentralization threshold, with no entity holding more than XX% of ADA. Ethereum is expected to pass as well, although regulators may examine Lido’s influence over staking and decision-making. VC-backed chains are more vulnerable, especially when teams or investors hold large token allocations and future unlocks are scheduled. One critical catch is the historical benchmark: the system must have met all decentralization and maturity requirements as of January 1, 2020. Cardano’s Shelley upgrade, which introduced staking, launched in July 2020, after the deadline. Before that, the network was controlled by three founding entities. This timing may disqualify it under the CLARITY Act's strict criteria. At this point, it is not at all certain whether Cardano will be a commodity or a security. Ethereum transitioned from PoW to PoS in September 2022. Despite this major upgrade after the deadline, Ethereum likely meets the maturity requirement. However, regulators may scrutinize how the upgrade was decided and whether it reflects centralized influence. I believe most crypto project tokens will end up being classified as securities, meaning they’ll fall under SEC oversight. In contrast, Bitcoin and Ethereum are likely to be treated as commodities. I’d like to see ADA qualify as a commodity, as it currently meets the maturity requirements. The main obstacle is timing—Cardano’s Shelley upgrade, which introduced staking and broader decentralization, happened in July 2020, about seven months after the regulatory cutoff date of January 1, 2020. The Genesis keys (burned in 2024) may not be a major issue, because node operators had to upgrade voluntarily before any hard fork could be triggered. The founding entities controlled the reserve through Genesis keys. I don't know how the regulators will judge this. It seems to me as an issue. Whether this disqualifies Cardano depends on how strictly regulators interpret the law. It’s unclear if they’ll allow flexibility or insist on a literal reading of the maturity criteria. That uncertainty leaves room for debate—and for hope. Cardano may have to wait a few years before it becomes a commodity. I still think it is closer to achieving this than most projects.  XXXXX engagements  **Related Topics** [decentralized](/topic/decentralized) [blockchain](/topic/blockchain) [sec](/topic/sec) [clarity](/topic/clarity) [cardano](/topic/cardano) [coins layer 1](/topic/coins-layer-1) [coins made in usa](/topic/coins-made-in-usa) [coins cardano](/topic/coins-cardano) [Post Link](https://x.com/JaromirTesar/status/1946117772947435524)
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Cardano YOD₳ @JaromirTesar on x 12.8K followers
Created: 2025-07-18 08:00:08 UTC
The CLARITY Act aims to clarify the regulation of digital assets, distinguishing between securities (regulated by the SEC) and commodities (regulated by the CFTC).
The act provides criteria like blockchain maturity and decentralized control, but specific project classification is left to regulatory interpretation.
As of now, no crypto project has been officially recognized as “mature” under the Act.
Let's explore the maturity criteria and what the impact may be on some blockchains, including Cardano.
This is a checklist of maturity criteria used to decide whether a digital asset counts as a commodity.
▪️Market Value and Development: The asset’s value must come from real-world use, not speculation, and the blockchain must be largely developed, not in an early stage.
▪️Functionality: The system must work well, letting users do things like transactions, deploy software, or participate in consensus (like mining or staking).
▪️Openness and Interoperability: The issuer must not impose unilateral limits on user activity, ensuring no centralized control.
▪️Programmatic Operation: It must run on clear, pre-set rules encoded in the system.
▪️Decentralized Governance: No single person or group can control it, and no one can hold more than XX% of the voting power to change how it works.
▪️Impartiality: No special permissions for anyone to change it, except for necessary updates like fixing errors, done through a decentralized process.
▪️Distributed Ownership: The issuer and related parties can't own or control more than XX% of the asset.
For blockchain systems created before the enactment of the CLARITY Act, additional conditions apply:
▪️The system must have met all requirements as of January 1, 2020!
▪️At least XX% of the digital commodity must have been held by non-affiliated holders as of Jan 1, 2020, ensuring decentralized ownership.
The following is just my take—final decisions on project maturity rest with the regulators.
Most meme coins will likely be classified as securities because they lack real-world utility and exist primarily for speculative purposes.
Dogecoin is an exception—it runs on its blockchain, supports transactions, and allows users to participate in consensus, giving it (some) functional value beyond speculation.
Bitcoin and Dogecoin are essentially similar projects.
Dogecoin is a fork of Litecoin, which is a fork of Bitcoin.
L1 blockchains such as Bitcoin, Ethereum, and Cardano generally meet the requirements for real-world use and decentralized operation.
Many other L1s as well.
However, if a team holds private keys that control network upgrades or if the system relies on a centralized sequencer, it fails to meet the openness and programmatic operation criteria.
This is a common issue among many L2s and even some L1s.
Cardano has made significant progress toward decentralization. Its Genesis keys were burned in 2024, and on-chain governance was introduced.
No entity can hold more than XX% of the coins and cannot have more than XX% of the voting power.
In PoW networks, these are two different things, unlike PoS, where coins (mostly) represent voting power.
Bitcoin and Ethereum do not have formal on-chain governance, but their permissionless consensus mechanisms likely satisfy the decentralization requirement.
In contrast, networks like Solana or Sui may face scrutiny due to the economic barriers to block production—only entities holding large amounts of tokens can participate meaningfully, and if the team or VCs control a large portion of the supply, they can delegate influence at will.
Bitcoin’s mining distribution is relatively decentralized, with no miner controlling more than XX% of the hashrate.
The largest miner holds around 6%, although Foundry USA, a mining pool, has exceeded XX% of block production.
This introduces a degree of centralization, especially since one entity can decide whether to upgrade nodes.
Still, Bitcoin will likely pass regulatory review.
XXXX% of ADA was sold in the public sale. Initially, XXXX% was in reserve (which is gradually released into circulation through staking).
The reserve was controlled by Genesis keys.
Cardano also appears to meet the decentralization threshold, with no entity holding more than XX% of ADA.
Ethereum is expected to pass as well, although regulators may examine Lido’s influence over staking and decision-making.
VC-backed chains are more vulnerable, especially when teams or investors hold large token allocations and future unlocks are scheduled.
One critical catch is the historical benchmark: the system must have met all decentralization and maturity requirements as of January 1, 2020.
Cardano’s Shelley upgrade, which introduced staking, launched in July 2020, after the deadline.
Before that, the network was controlled by three founding entities. This timing may disqualify it under the CLARITY Act's strict criteria.
At this point, it is not at all certain whether Cardano will be a commodity or a security.
Ethereum transitioned from PoW to PoS in September 2022.
Despite this major upgrade after the deadline, Ethereum likely meets the maturity requirement.
However, regulators may scrutinize how the upgrade was decided and whether it reflects centralized influence.
I believe most crypto project tokens will end up being classified as securities, meaning they’ll fall under SEC oversight.
In contrast, Bitcoin and Ethereum are likely to be treated as commodities.
I’d like to see ADA qualify as a commodity, as it currently meets the maturity requirements.
The main obstacle is timing—Cardano’s Shelley upgrade, which introduced staking and broader decentralization, happened in July 2020, about seven months after the regulatory cutoff date of January 1, 2020.
The Genesis keys (burned in 2024) may not be a major issue, because node operators had to upgrade voluntarily before any hard fork could be triggered.
The founding entities controlled the reserve through Genesis keys. I don't know how the regulators will judge this. It seems to me as an issue.
Whether this disqualifies Cardano depends on how strictly regulators interpret the law.
It’s unclear if they’ll allow flexibility or insist on a literal reading of the maturity criteria. That uncertainty leaves room for debate—and for hope.
Cardano may have to wait a few years before it becomes a commodity. I still think it is closer to achieving this than most projects.
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Related Topics decentralized blockchain sec clarity cardano coins layer 1 coins made in usa coins cardano