US Senator Elizabeth Warren: The CLARITY Act May Allow Public Companies Like Tesla and Meta to Bypass SEC Oversight

According to ChainCatcher, citing a report from Cointelegraph, U.S. Senator Elizabeth Warren has issued a warning that if a bill aimed at regulating the cryptocurrency market becomes law, publicly listed companies may circumvent U.S. securities regulations.

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

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