Tuesday evening’s draft of CLARITY continues to bring our industry closer to well-defined rules of the road. One of the most interesting elements of the much-hyped crypto market structure bill draft is how it strictly defines how the government will determine whether a crypto system is decentralized, or not.

The technical term the draft uses for benchmarking centralization is the presence of “coordinated control,” i.e., the idea that insiders and coordinated ‘common control’ groups are in control of a crypto system in practice. It’s a binary classification – the project/token either is under coordinated control, or is not.

• If it’s not, the project can take steps to certify that status with the SEC.

• If it is, the project…