Minority staff of the Senate Banking Committee outlined five shortcomings of the proposed U․S․ crypto regulatory framework under the Digital Asset Market Clarity Act, arguing that it fails to sufficiently protect investors and maintain financial stability and national security․

The minority report, drafted by ranking minority member Sen․ Elizabeth Warren, argues the bill could establish a dual regulatory regime so that some blockchain-based assets would not be considered securities․

Minority staff note that crypto issuers may be able to self-certify exemptions and that the SEC and state officials’ disclosure, supervision, and enforcement authority would be diminished․ Labor groups have…