Senator Elizabeth Warren has issued warnings regarding two proposed cryptocurrency regulations, expressing concerns that these measures could undermine investor protections by enabling corporations to circumvent established Securities and Exchange Commission oversight.
Specifically addressing the Digital Asset Market Clarity (CLARITY) Act, Warren argued that the legislation might permit major companies like Meta and Tesla to tokenize stocks without adhering to SEC regulations. Simultaneously, she criticized the GENIUS Act over fears it places excessive control of stablecoin regulatory frameworks in corporate hands.
These assessments emerge as the House evaluates three pivotal bills—including the CLARITY Act, GENIUS Act, and CBDC restriction proposals—that collectively carry substantial implications for cryptocurrency regulation. Supporting calls for legislative scrutiny, former White House ethics lawyer Richard Painter urged lawmakers to examine potential conflicts of interest, including former President Donald Trump’s cryptocurrency engagements.
Amid the intensifying debate, Ripple CEO Brad Garlinghouse emphasized the significance of blockchain technology and digital assets in the emerging $3.4 trillion cryptocurrency economy. He stressed the critical need for balanced regulatory approaches.