U.S. Senator: "Virtual asset regulation bill could be exploited to circumvent securities regulations"

Concerns have been raised that the market structure legislation 'CLARITY Act,' currently being pursued in the U.S. Congress, could fundamentally change the way large corporations issue securities.

According to NewsBTC on the 17th (local time), U.S. Senator Elizabeth Warren warned that this bill "could open a path to circumvent long-standing securities regulations."

The bill stipulates the transfer of certain tokens onto blockchain and shifts jurisdiction from the U.S. Securities and Exchange Commission (SEC) to the U.S. Commodity Futures Trading Commission (CFTC).

Senator Warren pointed out, "Based on the wording of the bill, every company listed on the New York Stock Exchange (NYSE) could upload its shares onto the blockchain," adding, "In this case, companies could evade SEC registration requirements."

She further stated, "Such a structure could in effect undermine the value of the NYSE and neutralize investor protection mechanisms," and added, "According to the draft bill, token issuance through functional blockchain is still considered fundraising, but if shares are tokenized, there is room to bypass SEC review."