Sen. Warren warns that the CLARITY bill could allow Meta, Tesla, and other major firms to bypass SEC rules
The post Sen. Warren warns that the CLARITY bill could allow Meta, Tesla, and other major firms to bypass SEC rules appeared on BitcoinEthereumNews.com.
Senator Elizabeth Warren is sounding the alarm over what she sees as a dangerous loophole in new crypto legislation. As the House prepares to vote on the CLARITY bill next week, Lummis warns that its current language could allow major publicly traded companies like Meta or Tesla to sidestep decades of investor protections simply by tokenizing their assets. In a Wednesday hearing of the Senate Banking Committee to address crypto market structure legislation, Senator Warren said that new crypto rules shouldn’t open a back door to destroy the securities laws. In a statement, Warren said, “Think for just a minute about what that means. Under the House bill, a publicly-traded company like Meta or Tesla could simply decide to put its stock on the blockchain and POOF! it would escape all SEC regulation.” This simply means that if these companies decided to turn their stocks into a crypto token and put it on blockchain under the CLARITY bill, it might no longer be subject to the SEC regulation like financial disclosures and investor protection. This could create a loophole that allows big companies to evade financial regulations by calling their stocks or assets “crypto tokens.” Shut down the superhighway for presidential corruption Warren has accused Trump of using his position to make billionaires richer. She asked Congress to shut down the president’s crypto corruption. This means prohibiting public officials, including the president, from issuing, sponsoring, or profiting from crypto tokens. She said that Trump has already benefited from issuing his stablecoin, his memecoin, owning a Bitcoin mining company, and controlling a huge portfolio of crypto investments. According to reports, the President and his associates pocketed more than $320 million alone from the $TRUMP memecoin, while most retail investors who bought that token lost money. Also, Bloomberg reported that Trump had…
Filed under: News - @ July 9, 2025 7:22 pm