U.S. Congress to Hold Hearing on Cryptocurrency Regulation Amid Political Storm
The U.S. Congress is set to convene a hearing on cryptocurrency regulation, but a meeting originally intended to advance industry legislation has now sparked a political storm due to President Trump’s involvement. Democratic lawmakers have criticized the Republican Party for enabling Trump’s ambition to “monopolize the market” and plan to collectively walk out in protest during the hearing.
Congressional Hearing Exposes Divisions; Democrats Threaten to Walk Out in Protest
According to Politico, Maxine Waters, the chief Democratic member of the U.S. House Financial Services Committee and a California Congresswoman, plans to join other Democratic members in boycotting Tuesday’s joint hearing. This move is seen as a strong backlash against Trump’s engagement in the cryptocurrency industry.
Republicans Release Draft Bill; Call for Bipartisan Cooperation Rather Than Opposition
Despite the Democrats’ plans for protest, Republicans are calling for the maintenance of a dialogue mechanism for bipartisan cooperation. A spokesperson for French Hill, an Arkansas Republican and member of the House Financial Services Committee, pointed out that since the last Congress, both parties have engaged in several “productive” discussions regarding crypto market framework legislation and hope that Maxine Waters will reconsider. “We encourage Ms. Waters to participate in tomorrow’s hearing, present her views, and reconsider her opposition.”
Digital Asset Blueprint Debuts; Focus on the Future of American Innovation
The hearing, titled “The Future of American Innovation and Digital Assets: A Blueprint for the 21st Century,” is jointly hosted by the House Financial Services and Agriculture Committees, focusing on how to regulate the cryptocurrency industry. The Republican leadership released a draft bill the day before the hearing (Monday), which resembles past legislative efforts over the years, primarily concentrating on clarifying the regulatory framework and market structure.
Legislative Progress on Stablecoins Stalls; Democratic Senators Issue Joint Statement of Warning
In addition to the hearing, legislative work on stablecoins continues to progress in Congress. However, Democratic senators have expressed strong reservations about the current version of the content. On Saturday, nine Democrats, including Ben Ray Luján, John Hickenlooper, and Adam Schiff, issued a joint statement indicating that “multiple unresolved issues” exist in the draft, and they will not support the current version if it goes to a vote. “While we are willing to continue collaborating with colleagues on related issues, we will be unable to vote in favor of terminating the debate process (cloture) should the existing version proceed to a vote.”
Trump’s Involvement in Cryptocurrency; Democrats Criticize Intent to Monopolize Market
The Democratic backlash is not only related to the content of the bill but also to Trump’s recent active involvement in the cryptocurrency sector. Reports suggest that the Trump family is investing in a DeFi protocol and is associated with several meme coins and NFT projects. Recently, World Liberty Financial, linked to Trump, also launched its own stablecoin, raising alarms among Democrats.
Hill previously pointed out that Trump’s involvement in meme coins and stablecoin issuance complicates Congress’s regulatory efforts.
Waters Directly Criticizes “King of Crypto”; Accuses Trump of Profiting Off Currency
Waters has previously criticized Trump for using cryptocurrency policies as a tool for personal gain. “This committee has voted to make Trump the king of cryptocurrency, allowing him to control the stablecoin market, even kicking George Washington out of the dollar and designating his own stablecoin as legal tender,” she stated bluntly during last month’s meeting. “Rather than stopping this fraud, you choose to condone it. Mr. ###, we must stop Trump before we can discuss any cryptocurrency legislation.”
Risk Warning
Investing in cryptocurrency carries a high level of risk, and its prices can be extremely volatile, resulting in the loss of all principal. Please assess risks carefully.