Senator Elizabeth Warren of Massachusetts is raising serious concerns about the CLARITY Act, warning that the proposed legislation poses a threat to the stability of the U.S. economy. In her latest statement, she called on the federal government to ensure that cryptocurrencies are not misused in ways that could undermine the nation’s financial system.
Warren pointed out that the bill includes a provision that would allow companies listed on the New York Stock Exchange (NYSE) to sidestep regulation by the Securities and Exchange Commission (SEC) simply by migrating to a blockchain. According to her, this loophole could result in massive deregulation, allowing corporations to evade oversight entirely.
🔹 Warren Sounds Alarm on Token-Based Fundraising
She further expressed concern that the bill would allow projects to raise capital through token sales while avoiding SEC scrutiny. This, she argues, could lead to a surge in unregulated corporate fundraising and weaken investor protections.
SEC Commissioner Hester Peirce acknowledged that tokens should still fall under securities laws in many cases. She emphasized the need for regulation when projects raise public funds and retain centralized control.
“Under the House proposal, a publicly traded company like Meta or Tesla could just move their shares onto a blockchain and – poof – no more SEC oversight. That’s a serious risk for our country,” Warren said.
🔹 Ripple and Others Highlight Risks
Ripple CEO Brad Garlinghouse reminded lawmakers that over 55 million Americans are now involved in crypto, with the market reaching a valuation of $3.4 trillion. He emphasized the need for a clear regulatory framework to ensure the sector's sustainable future.
The consumer advocacy group Americans for Financial Reform (AFR) also criticized the legislation, arguing it reduces the SEC’s ability to protect everyday investors. They claim the CLARITY Act is even more deregulatory than the previously debated FIT21 bill.
🔹 More Lawmakers Join in – Senate Vote Still Pending
Representatives Maxine Waters and Angie Craig also raised objections, saying the legislation weakens the SEC’s authority. Critics believe the bill favors crypto firms over retail investors and may lead to a lack of accountability.
Despite the pushback, the CLARITY Act has already passed through the House Agriculture and Financial Services Committees. However, it still faces an uncertain future in the Senate.
🔹 Crypto Week Highlights: CLARITY, GENIUS, and Anti-CBDC Bills
The bill took center stage during Washington’s “Crypto Week,” where lawmakers also advanced the GENIUS Act and the Anti-CBDC bill through procedural votes. These legislative developments reflect the growing influence of crypto on U.S. policy.
The Anti-CBDC bill aims to block the Federal Reserve from implementing a central bank digital currency (CBDC). In 2022, the Fed outlined the pros and cons of such a currency, but the bill now seeks to stop the initiative outright. Congressman Andy Harris revealed that lawmakers are considering integrating CBDC restrictions into the CLARITY Act itself.
🔹 Trump, Crypto, and Democrat Pushback
Representative Maxine Waters has called the GENIUS and Anti-CBDC bills part of Trump’s agenda to boost the crypto industry. Critics, including Warren and former White House ethics lawyer Richard Painter, have voiced concern over Trump’s involvement in digital assets. Reports indicate that his crypto investments have boosted his portfolio by roughly $620 million.
#ElizabethWarren , #SEC , #DigitalAssets , #CryptoNews , #USPolitics
Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“