U.S. Senator Elizabeth Warren: The CLARITY Act may allow publicly traded companies like TSL and Meta to evade SEC regulation.

On July 10, Cointelegraph reported that U.S. Senator Elizabeth Warren issued a warning that if a bill aimed at regulating the crypto market becomes law, publicly traded companies may bypass U.S. securities law oversight. During a hearing on Wednesday held by the Senate Banking Committee regarding legislation on crypto market structure, Warren, a senior member of the committee, stated that she supports digital asset regulation that can enhance the U.S. financial system, but expressed serious concerns about the “Digital Asset Market Transparency Act” (CLARITY Act) currently under consideration in the House of Representatives. Warren pointed out that the bill could allow “non-crypto companies” to circumvent the oversight of the U.S. Securities and Exchange Commission (SEC) through asset tokenization. According to this bill, publicly traded companies like Meta or TSL could completely evade SEC oversight simply by putting their own stock on the Blockchain.