New House bill could let Tesla and Meta skip SEC rules

New House bill could let Tesla and Meta skip SEC rules originally appeared on TheStreet.

Elizabeth Warren is resurfacing the cry for the regulation of crypto once more, this time warning that new legislation might be used as a backdoor for IFPs (Issuers of For-Profit Projects) to avoid U.S. securities laws, that are laying down the requirements for prospective issuers.

At a Senate Banking Committee hearing on Wednesday, Warren honed in on the Digital Asset Market Clarity (CLARITY) Act, recently introduced in the House of Representatives. Reiterating her support for tighter digital asset regulation, Warren said the bill, as drafted, imperils financial regulation.

“Under the House bill, a publicly traded company like Meta or Tesla could simply decide to put its stock on the blockchain and—poof!—it would escape all SEC regulation," Warren warned. "That is a serious problem for our country."

Warren blasted House Republicans for bowing to the interests of the crypto lobby, characterizing the bill as an "industry handout" before drawing attention to the expanding web of connections between President Donald Trump and the crypto industry.

Trump has pocketed more than $620 million in recent months, thanks to projects like World Liberty Financial and his own Official Trump memecoin, Warren stated.

The Massachusetts senator has also raised concerns about Meta's influence over the GENIUS Act, another pending bill that would shape stablecoin regulation, and she warned that corporate influence could steer the legislative process.

Ethical concerns

At the same time, the hearing also highlighted broader ethical concerns. Former White House ethics lawyer Richard Painter, speaking at Warren’s behest, stressed that lawmakers who own crypto must first sell their holdings before making policy in the space. "You cannot regulate what you're invested in," he said flatly.

Ripple CEO Brad Garlinghouse also testified, telling the lawmakers they should adopt clear and fair rules to govern the $3.4 trillion crypto economy, which includes more than 55 million Americans today.

The crypto market structure wars are likely to only intensify next week as the House is set to hear the CLARITY and GENIUS Acts. Senate leaders aim to arrange a vote for September.

New House bill could let Tesla and Meta skip SEC rules first appeared on TheStreet on Jul 9, 2025

This story was originally reported by TheStreet on Jul 9, 2025, where it first appeared.