- Warren claims blockchain loophole could let corporations evade SEC oversight.
- House approves divisive crypto bills after marathon ten‑hour floor debate.
- Senate showdown looms as Trump supports bills amid growing controversy.
Senator Elizabeth Warren has issued a strong warning about the potential consequences of the CLARITY Act, one of three crypto-related bills recently passed by the U.S. House of Representatives. She claimed the legislation could trigger a collapse of the American economy if implemented without stronger regulatory protections.
The CLARITY Act includes a provision that would allow public companies to issue tokenized stocks on the blockchain. According to Warren, the move would enable the big companies to avoid regulation by the Securities and Exchange Commission. She cautioned that even such companies as Meta and Tesla might evade typical checks and increase capital without responsibility.
Warren states that such a deficiency of regulation presents significant risks to investors and may cripple financial markets. She accused crypto lobbyists of coercing the passage of laws that protect businesses at the expense of consumers.
The House vote on the GENIUS Act and the Anti-CBDC Surveillance State Act took almost 10 hours. The vote was declared one of the longest on record to regulate crypto by lawmakers who were heavily split. All three bills are currently being referred to the Senate to be debated further.
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Lawmakers Divided as Crypto Bills Head to Senate
Several Democrats, including Maxine Waters and Angie Craig, expressed strong opposition to the CLARITY Act. They argued it would weaken the SEC and leave retail investors vulnerable to fraud and financial abuse. The advocacy groups also protested against the bill, stating it would raise crypto scams.
Ripple CEO Brad Garlinghouse defended the bills, saying that millions of Americans are already in crypto. He indicated that a regulatory structure is long overdue to enable the industry to have clear guidance and promote innovation on the matter.
The legislation has also found support even from President Donald Trump, who has again served as President. His own crypto became a major concern as reports indicate that it has exploded to beyond $620 million, bringing forth suspicions of political influence with digital assets.
Warren remains active in promoting further guarding as the Senate prepares to review the legislation. She thinks that the increased use of crypto might bring serious havoc to the economy unless strict regulatory guardrails are put in place.
Conclusion
With the Senate set to consider the bills next, Warren’s stark warning has added urgency to the debate. The outcome could shape the future of crypto regulation and determine whether investor protections or industry freedoms take priority.
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