US CLARITY bill could allow Tesla and Meta to evade SEC rules — Senator Warren

The legislation to establish crypto market structure is one of three bills the US House of Representatives is expected to consider starting next week.

Massachusetts Senator Elizabeth Warren is sounding the alarm about how publicly traded companies could essentially bypass US securities laws if a bill to regulate cryptocurrency markets becomes law.

In a Wednesday hearing of the Senate Banking Committee to address crypto market structure legislation, ranking member Warren said she would be in favor of digital asset regulations strengthening the US financial system, but expressed concerns about the Digital Asset Market Clarity, or CLARITY, Act under consideration in the House of Representatives.

The Massachusetts senator suggested that “non-crypto companies” could tokenize their assets to evade regulations enforced by the US Securities and Exchange Commission (SEC).

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