Senator Warren: Bill's Civil Asset Protection for Cryptocurrency Accounts Insufficient, Increased Leverage Will Raise Systemic Risk

BlockBeats News, May 14th: Democratic Senator Elizabeth Warren stated at the Banking Committee hearing on the "CLARITY Act" that the bill would expand leverage in various asset classes and regulatory regimes, increasing systemic risk. Warren acknowledged that the 115th amendment had taken some steps to protect consumers from harm by the new regime, but the effort was far from enough. She criticized the amendment for seemingly eliminating civil protections for cryptocurrency accounts, highlighting a fundamental paradox in the field: on one hand, pushing more of the market into the crypto space, and on the other hand, removing protections for investors and avenues for recourse for victims. She warned that this was the wrong path and would ultimately lead to an economic collapse.

The "Cryptocurrency Market Structure Act" (i.e., the CLARITY Act) is currently undergoing line-by-line amendment voting and debate.