House Bill Allows Tesla and Meta to Skip SEC Rules, Warns Elizabeth Warren

A new House bill could allow companies like Tesla and Meta to bypass SEC rules by putting their stock on the blockchain. Senator Elizabeth Warren has expressed concerns, calling it an "industry handout" and warning that corporate influence could steer the legislative process. The bill aims to regulate the $3.4 trillion crypto economy, with 55 million Americans involved. The Senate plans to vote on the bill in September.

A new bill introduced in the House of Representatives aims to regulate the $3.4 trillion cryptocurrency market, involving 55 million Americans. However, concerns have been raised about potential loopholes that could allow companies like Tesla and Meta to evade Securities and Exchange Commission (SEC) regulations by tokenizing their stocks.

Senator Elizabeth Warren, a ranking member of the Senate Banking Committee, expressed her concerns during a Wednesday hearing. She warned that the Digital Asset Market Clarity, or CLARITY, Act under consideration could allow publicly traded companies to tokenize their assets and escape SEC oversight. Warren stated, “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” [3].

The bill, introduced by U.S. Rep. French Hill, R-Ark., aims to give the Commodity Futures Trading Commission oversight authority for cryptocurrency assets like blockchain and the SEC oversight for crypto securities. However, Warren's concerns highlight the potential for corporate influence to steer the legislative process, which she referred to as an "industry handout."

The Senate plans to vote on the bill in September, and it will likely face scrutiny over its potential impact on the financial system and the cryptocurrency market. The bill is one of three crypto market structure bills the House is expected to consider starting next week.

References:
[1] https://www.insidenova.com/news/national/senate-battles-crypto-regulation-as-crypto-week-approaches/article_adb3d34a-7881-5040-a659-2c545945cb9c.html
[2] https://bitcoinist.com/us-senate-bill-bukele-bitcoin-sanctions-plan/
[3] https://cointelegraph.com/news/elizabeth-warren-clarity-bill-tech-companies-evade-sec