Finance Terms

Digital Asset Market Clarity Act (CLARITY Act) The Digital Asset Market Clarity Act , often called the CLARITY Act , is a major U.S. law proposal under the broader “Project Crypto” push to create clear, written rules for digital assets. The big idea is simple, stop relying on case-by-case enforcement and replace it with a predictable rulebook. Definition: The CLARITY Act is a statutory framework that explains which U.S. regulator is in charge of different types of crypto assets and sets registration requirements for firms that trade, broker, or custody them. How it splits oversight: CFTC: Oversees digital commodities , tokens tied to a functional crypto system where value mainly comes from how the system runs and market supply and demand. SEC: Oversees digital securities , including tokenized versions of traditional securities and tokens sold as investment contracts. What changed in practice: As of early 2026, a joint SEC and CFTC technical interpretation suppor...

Items in Process of Collection (IPC) Definition: Items in Process of Collection (IPC) is a bank balance sheet asset representing checks or electronic items that have been deposited by customers but have not yet been finally settled by the paying bank. In plain English, IPC is the “financial limbo” between the moment a customer deposits funds and the moment the bank actually receives them. How IPC Works When you deposit a $10,000 check, your bank typically credits your account immediately. However, the bank has not yet received cash from the other institution. Until settlement occurs, the deposit sits in IPC. Two related accounting concepts help explain this timing difference: Gross IPC: Total dollar amount of all uncollected items currently in transit. Deferred Credit Items: The liability representing provisional credit given to customers. The difference between the two is known as Net Float : Net Float = Gross IPC – Deferred Credit Items This “float” reflect...