U.S. Senator Elizabeth Warren: CLARITY Act Could Allow Public Companies like Tesla and Meta to Evade U.S. SEC Oversight

BlockBeats News, July 10th, according to Cointelegraph's report, U.S. Senator Elizabeth Warren issued a warning that if a bill aiming to regulate the cryptocurrency market becomes law, publicly traded companies may circumvent U.S. securities laws.

During a hearing on cryptocurrency market structure legislation held by the Senate Banking Committee on Wednesday, Warren, serving as a senior member of the committee, stated that she supports digital asset regulation that strengthens the U.S. financial system but raised serious concerns about the "Digital Asset Market Transparency Act" (CLARITY Act) currently under review in the House.

Warren pointed out that this bill may allow "non-crypto companies" to bypass the oversight of the U.S. Securities and Exchange Commission (SEC) through asset tokenization. Under this House bill, publicly traded companies like Meta or Tesla could completely evade SEC regulation simply by putting their stocks on the blockchain.