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

On July 10th, as reported by Cointelegraph, US Senator Elizabeth Warren issued a warning. She said that if a bill aimed at regulating the cryptocurrency market becomes law, publicly traded companies might circumvent US securities laws. During a hearing on cryptocurrency market structure legislation held by the Senate Banking Committee on Wednesday, Warren, who is a senior member of the committee, stated that she supports digital asset regulation to strengthen the US financial system. However, she raised serious concerns about the "Digital Asset Market Transparency Act" (CLARITY Act) currently under review in the House. Warren pointed out that this bill might allow "non-crypto companies" to bypass the oversight of the US Securities and Exchange Commission (SEC) through asset tokenization. Under this House bill, publicly traded companies like Meta or Tesla could completely avoid SEC regulation simply by putting their stocks on the blockchain.