The CLARITY law, which is on the agenda in the USA (crypto currency -oriented), draws attention with discussions that major technology companies can escape regulatory surveillance. Senator Elizabeth Warren warned the US Senate Banking Committee on the risks posed by this draft law. He said that the law enables leading companies of the automotive and technology sector to avoid existing financial regulations through crypto assets.
They will receive crypto money
According to Senator Warren, with the CLARITY law, companies may have the opportunity to act without being subject to securities by digitalizing the assets they have. This may mean a decrease in SEC (Securities and Stock Exchange Commission) control, especially for important companies such as Tesla and Meta. Warren pointed out that companies’ operating with less transparency and supervision within the framework of this law can lead to various risks.
Senator Elizabeth Warren: “The passing of the Clardy Law may lead to less regulation of financial markets under the name of innovation. Large companies are exempted from existing regulations that protect investors and markets.”
In the event that the draft law enters into force, it is concerned that big names from the technology and automotive sector will be able to stand out from the comprehensive control of the SEC and produce new financial instruments through the digitalization of assets. Warren was one of the greatest enemies in the history of crypto money and echoed in the crypto community with the nidin of “Yetizin Meta, Tesla, Microsoft, OpenAI will receive crypto currency”. If technology giants are profitable for big companies, why shouldn’t they do it? SEC can eliminate the problem by creating appropriate control mechanisms?
Investor protection and financial transparency
One of the most important issues with the CLARITY law was concerns about the protection of individual investors and the continuity of transparency in financial markets. It is thought that the role of regulatory institutions may decrease and companies can act in a more free environment. Who thinks about it? Of course, they are like Warren who adopt a negative approach to crypto currencies. If you have forgotten, I remember the days when he was vomiting anger at crypto currencies by pulling speeches from the minvali “dry this swamp” in the collapse of November 2022.
Senator Warren: “Crypto asset markets have complex and dynamic structures that require the protection of the interests of investors. Loosening control can increase systemic risks.”
At this point, Warren addresses the possible risks that investors may face during the digitalization of assets are among the important issues to be evaluated in the later stages of the bill. Legal supporters argue that innovation should be opened.
During the development of legal regulations in the USA, the financial stability of the CLARITY law and the effects of increasing or reducing investor security are closely monitored. With the priority for the protection of investors, efforts to establish a balance between innovative steps will be continued. The course of the process remains important in order to make clear decisions on the subject.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
