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

ChainCatcher news, according to Cointelegraph, U.S. Senator Elizabeth Warren has issued a warning that if a bill aimed at regulating the cryptocurrency market becomes law, publicly traded companies may circumvent U.S. securities law oversight.

During a hearing on cryptocurrency market structure legislation held by the Senate Banking Committee on Wednesday, 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 evade oversight from the U.S. Securities and Exchange Commission (SEC) by tokenizing their assets. According to this House bill, publicly traded companies like Meta or Tesla could completely escape SEC oversight simply by placing their stocks on the blockchain.