The U.S. Congress is about to convene a hearing on cryptocurrency regulation, but a meeting originally intended to promote industry legislation has now sparked a political storm due to President Trump's involvement. Democratic lawmakers criticize Republicans for encouraging Trump's ambition to "monopolize the market" and plan to collectively walk out in protest during the hearing.
Table of Contents
ToggleCongressional Hearing Reveals Divisions, Democrats Threaten to Walk Out in Protest
According to Politico, Maxine Waters, the top Democratic lawmaker on the House Financial Services Committee and a California Representative, plans to boycott Tuesday's joint hearing along with other Democratic members. This is seen as a strong pushback against Trump's involvement in the crypto industry.
Republicans Release Draft Legislation, Call for Bipartisan Cooperation
Despite the Democrats' brewing protest, Republicans are calling for maintaining a bipartisan dialogue mechanism. A spokesperson for French Hill, the Republican chairman of the House Financial Services Committee from Arkansas, noted that both parties have had multiple "productive" discussions about the crypto market framework bill since the last Congress and hope Maxine Waters will reconsider. "We encourage Congresswoman Waters to attend tomorrow's hearing, present her views, and reconsider her opposition."
'Digital Asset Blueprint' Makes First Appearance, Focusing on U.S. Innovation Future
The hearing is titled "The Future of American Innovation and Digital Assets: A Blueprint for the 21st Century," jointly hosted by the House Financial Services and Agriculture Committees, focusing on how to regulate the crypto industry. The Republican leadership released a draft the day before (Monday), similar to legislative efforts in recent years, primarily concentrating on clarifying regulatory frameworks and market structures.
(A sneak peek at the new U.S. crypto bill 'TBAA'! BTC and ETH listed as digital commodities, SEC and CFTC to handle staking tokens separately)
Stablecoin Legislation Progress Stalls, Democratic Senators Issue Joint Warning
Besides the hearing, stablecoin legislation continues to progress in Congress. However, Democratic senators have strong reservations about the current version. On Saturday, 9 Democrats, including Ben Ray Luján, John Hickenlooper, and Adam Schiff, issued a joint statement pointing out "multiple unresolved issues" and stating they will not support the current version. "While we are willing to continue working with our colleagues on these issues, we cannot vote to support cloture if the existing version reaches the voting stage."
Trump Intervenes in Crypto Industry, Democrats Criticize Intention to Monopolize Market
The Democrats' strong reaction is not only related to the bill's content but also to Trump's recent active participation in the cryptocurrency realm. It is rumored that the Trump family is investing in a DeFi protocol and is associated with several meme coins and Non-Fungible Token projects. Recently, World Liberty Financial, linked to Trump, also launched its own stablecoin, raising Democratic concerns.
Hill previously noted that Trump's involvement in meme coins and stablecoin issuance has made congressional regulatory work more complex.
(WLFI airdrop of USD1, BitGo launches staking service - is this paving the way for WLFI to enter the institutional market?)
Waters Directly Criticizes "Crypto King", Accuses Trump of Using Cryptocurrency to Amass Wealth
Waters has previously strongly criticized Trump for using crypto policy as a tool for personal gain. "This committee has voted to make Trump the crypto king, allowing him to control the stablecoin market, even kicking George Washington out of the dollar and listing his own stablecoin as legal tender," she said bluntly in last month's meeting. "Instead of stopping this fraud, you choose to condone it. Mr. Chairman, we must stop Trump before we can discuss any crypto legislation."
Risk Warning
Cryptocurrency investment carries high risks, with potentially significant price volatility, and you may lose all of your principal. Please carefully assess the risks.
