Senator Warren: "The CLARITY Act" provides insufficient civil protections for cryptocurrency accounts, and expanding leverage will increase 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 Amendment 115 took some steps to protect consumers from harm under the new regime, but they were far from sufficient. She criticized the amendment for seemingly removing civil protections for cryptocurrency accounts, highlighting a fundamental paradox in the field: on one hand, pushing more of the market into the crypto space, while on the other hand, removing protections for investors and victims seeking recourse. She warned that this was the wrong path and would ultimately lead to an economic collapse.

The "Cryptocurrency Market Structure Act" (aka the CLARITY Act) is currently undergoing line-by-line voting on the proposed amendments.