Sen. Warren Sounds Alarm: CLARITY Bill May Let Meta, Tesla, and Big Tech Dodge SEC Regulations

Wall Street's latest loophole just got a corporate-sized green light. The CLARITY bill—touted as a 'regulatory efficiency' win—could let tech giants like Meta and Tesla sidestep SEC oversight entirely. Here's how the sausage gets made in DC.

The Regulatory Escape Hatch

Forget lobbying—this bill hands Fortune 500 firms a legal backdoor. By reclassifying certain securities activities, CLARITY effectively neuters the SEC's enforcement teeth for companies with market caps over $200B (read: the usual suspects).

Innovation or End-Run?

Proponents claim it'll 'unshackle disruptive technologies.' Critics see a blatant power grab—another case of Silicon Valley writing its own rulebook while retail investors foot the bill. Remember Libra? Yeah, neither does Meta.

The Bottom Line

When lawmakers and lobbyists high-five over 'streamlining,' grab your wallet. This isn't about clarity—it's about letting the big players rig the game before the SEC even picks up the dice.

Shut down the superhighway for presidential corruption 

Warren has accused TRUMP of using his position to make billionaires richer. She asked Congress to shut down the president’s crypto corruption. This means prohibiting public officials, including the president, from issuing, sponsoring, or profiting from crypto tokens. 

She said that Trump has already benefited from issuing his stablecoin, his memecoin, owning a Bitcoin mining company, and controlling a huge portfolio of crypto investments. 

According to reports, the President and his associates pocketed more than $320 million alone from the $TRUMP memecoin, while most retail investors who bought that token lost money. 

Also, Bloomberg reported that Trump had added at least $620 million to his portfolio in a matter of months due to his crypto investments. Lummis said, “ If we’re going to provide rules of the road for crypto, we need to shut down this superhighway for presidential corruption at the same time.”

Lummis asks for equal protection from scammers 

Crypto investors should have the same protections from getting scammed or cheated as investors in any other asset. According to Warren, the protection shouldn’t be bigger, but it should be the same. 

She gave an example of the rules prohibiting stock exchanges from simultaneously serving as brokers and giving preferential treatment to their own trades over their customers’ should be applied to the crypto market. 

She also said that the law should ensure that turmoil in the crypto market doesn’t infect the traditional financial system. That means making sure that taxpayers are not on the hook for backstopping risky crypto bets. 

There should be strong capital, liquidity, and risk management safeguards for crypto exchanges, crypto dealers, and other middle-market players so they can meet their obligations to customers and counterparties even when the market is unstable.

In addition, she asked that the law should counter the threat of illicit finance with commonsense rules to fight crime and protect our national security. 

Crypto service providers that act as financial institutions must be required to implement anti-money laundering programs. She highlighted figures from the FBI that say that Americans lost more than $9 billion to crypto fraud last year. It was a 66% increase from the year prior. 

She said, “Republicans refused to strengthen AML rules and close sanctions loopholes in the GENIUS Act and said they’d deal with it in a crypto market structure bill. So this is it. No more kicking the can down the road. Now is the time to solve that problem.”

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