Senator Warren: The CLARITY Act provides insufficient civil protections for crypto accounts, and increasing leverage will raise systemic risk.

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BlockBeats News, May 14 — Democratic Senator Elizabeth Warren stated during the Senate Banking Committee hearing on the CLARITY Act that the bill would expand leverage across various asset classes and regulatory regimes, increasing systemic risk. Warren acknowledged that Amendment 115 made some progress in protecting consumers from the harms of the new system, but it was far from sufficient. She also criticized the amendment for seemingly removing civil protections for cryptocurrency accounts, highlighting a fundamental paradox in the field: on one hand, pushing more markets into the crypto space, and on the other, removing protections for investors and victims’ recourse. She warned that this is the wrong path, which could ultimately lead to an economic collapse.

The Cryptocurrency Market Structure Act (the CLARITY Act) is currently being debated and voted on clause by clause.

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