Warren Warns CLARITY Act Lets Meta, Tesla Evade SEC
Senator Elizabeth Warren sharply criticized the CLARITY Act during a July 9 Senate hearing, warning that the bill’s tokenization provisions could let public firms such as Meta and Tesla evade SEC oversight. She also flagged similar risks in the GENIUS Act, citing Meta’s Diem stablecoin history, and expressed concerns over the CBDC Anti-Surveillance State Act. The House Financial Services Committee will review all three crypto bills—CLARITY Act, GENIUS Act and CBDC Anti-Surveillance State Act—on July 14 as lawmakers debate a clear digital asset market structure framework. Ripple CEO Brad Garlinghouse urged swift action to establish rules reflecting 55 million U.S. crypto users and a $3.4 trillion market. Former White House ethics lawyer Richard Painter recommended that legislators divest crypto holdings to avoid conflicts. Both Painter and Warren singled out former President Trump for profiting $610 million in crypto investments and launching the TRUMP meme coin. The hearing marks the Senate’s first in-depth crypto market structure debate, with legislation targeted for September.
Bearish
Regulatory uncertainty around the CLARITY Act, GENIUS Act and CBDC legislation is likely to weigh on market sentiment. Short term, traders may pull back amid fears of stricter oversight and potential loopholes that undermine SEC enforcement. Long term, unless bills are clarified and balanced, ongoing debate could limit institutional adoption and slow tokenization projects, keeping volatility high.