BlockBeats News, May 14th - Democratic Senator Elizabeth Warren stated during 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 she emphasized that the efforts were insufficient. She criticized the amendment for seemingly removing civil protections for cryptocurrency accounts, highlighting a fundamental paradox in the field: while pushing more of the market into the crypto space, investor protection and victim restitution rights are being taken away. 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 amendment voting and debate.