Senator Warren Warns Crypto Bills Could Destabilize US Economy

U.S. Senator Elizabeth Warren has expressed grave concerns over a set of new crypto bills, including the CLARITY Act, warning that their passage could potentially destabilize the U.S. economy. Her remarks come as the U.S. House of Representatives advances several significant proposals aimed at reshaping crypto regulation.

The CLARITY Act, one of the three bills moved forward by the House, includes a provision that Warren argues would allow public companies to evade SEC oversight by transferring their stocks onto the blockchain. Warren highlighted that this could enable large corporations to raise capital without adequate regulatory checks, thereby reducing investor accountability and posing substantial risks to financial markets. She also criticized crypto lobbyists for influencing weak regulations that could jeopardize the broader economy.

The House vote on these crypto bills was notably lengthy, lasting nearly 10 hours, underscoring the deep divisions among lawmakers regarding crypto regulation. Alongside the CLARITY Act, the GENIUS Act and the Anti-CBDC Surveillance State Act were also passed in the procedural vote. These bills are now headed to the Senate, where their future remains uncertain. Democrats, including Maxine Waters have opposed the CLARITY Act, arguing that it would diminish the SEC's authority and expose retail investors to greater risks. Advocacy groups have also expressed concerns that the bill could exacerbate scams and fraud in the crypto space.

Not all stakeholders share Warren's perspective. Ripple CEO Brad Garlinghouse has noted that over 55 million Americans are already engaged in crypto and has called for a clear regulatory framework. President Donald Trump has also endorsed the bills, with reports suggesting that his personal crypto holdings have significantly increased, adding to the debate around political interests in the sector. This political dimension is a significant point of contention.

The focus now shifts to the Senate, where the bills will undergo further scrutiny. The outcome of this process will determine the future of crypto regulation in the U.S., marking a pivotal moment for the industry. Warren has made her stance clear: without robust safeguards, crypto poses risks to investors and could threaten the stability of the entire economy.