Warren says the CLARITY bill could blow up the U.S. economy

Senator  Elizabeth Warren of Massachusetts believes the CLARITY bill can potentially disrupt the entire U.S. economy. She also urges the U.S. government to use the system and guardrails to ensure crypto isn’t used to blow up the economy. 

The U.S. lawmakers argued that the legislation has a provision that would let any company listed on the New York Stock Exchange opt out of the Securities and Exchange Commission (SEC) regulation by digitizing itself. According to Sen Warren, companies could join the blockchain and detach from the regulators’ reach, which would blow up the value of the NYSE.

Warren shares concerns about the CLARITY bill

She wants to limit US companies (Amazon, Meta, GE) to protect the "US economy" / NYSE?

Not against NYSE, but it's just one company, fully owned by ICE, market cap: ~$100 billion.

Amazon market cap: $2.40 trillion.

NYSE ≠ economy.
All companies = economy. https://t.co/6Xo6QVgL1p

— CZ 🔶 BNB (@cz_binance) July 17, 2025

One of the provisions Warren is worried about is that the bill would allow projects to raise capital through token sales while using a functional blockchain. Warren said large companies could sidestep the SEC entirely, which could open the door for unregulated corporate fundraising and diminishing investor accountability.

SEC Commissioner Hester Peirce acknowledged that token classification should not prevent virtual currencies from being subject to securities law. She also argued that many projects should remain under the SEC’s watch since they involve investor funding and central control. 

“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. That is a serious problem for our country.”

–Elizabeth Warren, Senator for Massachusetts.

Ripple CEO Brad Garlinghouse mentioned on July 9 that over 55 million U.S. citizens participate in the crypto economy, equating to a $3.4 trillion market cap. He believes that a regulatory framework for crypto market structure is necessary to secure the future of the industry, which is long overdue. 

Americans for Financial Reform (AFR) said the legislation would limit the financial regulator’s power to protect retail investors. The consumer advocacy group also believes the CLARITY Act is more deregulatory than FIT21, which was established in 2024. According to the group, the bill could exempt digital assets from the SEC’s regulations, which may elevate scams and theft in the crypto sector.

Representatives Maxine Waters and Angie Craig have also shared their concern about the legislation, saying that it limits the powers of the SEC. The U.S. officials also argued that the Digital Asset Market Structure Clarity Act favors the crypto sector more than retail investors and could reduce regulatory accountability in the U.S.

The CLARITY Act has already passed the House Agriculture Committee and the House Financial Services Committee and is waiting to advance to the Senate, where its approval is not guaranteed. This week, the legislation was also under the scope during Washington’s ‘Crypto Week,’ which focuses on crypto policies, including other bills under review.

U.S. Representatives pass the GENIUS Act and the Anti-CBDC Act

Attaching our Anti-CBDC Surveillance State Act to the NDAA will ensure unelected bureaucrats are NEVER allowed to trade Americans’ financial privacy for a CCP-style surveillance tool. @POTUS has made it clear: our legislation is a key piece of our America First agenda, and we…

— Tom Emmer (@GOPMajorityWhip) July 17, 2025

The other bills that were passed a procedural vote during the ‘Crypto Week’ include the GENIUS Act and the Anti-CBDC Surveillance State Act. U.S. President Donald Trump said he expects the legislation to be on his desk after passing the Senate.

The Anti-CBDC bill also aims to prevent the Federal Reserve from establishing a central bank digital currency for monetary policy. The government agency reported in 2022 the pros and cons of a CBDC as it tried to explore the possibilities of the initiative. Representative Andy Harris revealed that the House Freedom Caucus had agreed to meet later after the vote to add CBDC provisions into Clarity.

Maxine Waters, Democrat of the House Financial Services Committee, argued that the GENIUS Act and the Anti-CBDC Act are an invitation for Trump to continue his crypto dealings. Former White House ethics lawyer Richard Painter and Warren have been against Trump’s involvement in the digital asset sector, with reports that his portfolio had surged by roughly $620 million due to his crypto investments.

KEY Difference Wire: the secret tool crypto projects use to get guaranteed media coverage