coinengineer.io
On May 6, U.S. Representative Maxine Waters, ranking member of the HFSC, led several Democratic lawmakers in walking out of a joint digital assets hearing. Waters accused former President Donald Trump of serious conflicts of interest regarding his crypto ownership and influence over regulators, calling the event tainted by “crypto corruption.”
In response, Republican lawmakers rebranded the hearing as a “roundtable” to bypass procedural rules and continued discussions.
Crypto Regulation Becomes a Political Battlefield
Despite the political tension, HFSC Chair French Hill pushed forward with calls to build a lasting crypto regulatory framework. Democrats, however, raised concerns about Trump’s memecoin, his family’s ties to crypto firms, and a $2 billion investment involving USD1 stablecoin and Binance.
In protest, Democrats released draft legislation to ban the President, Vice President, members of Congress, and their families from owning or profiting from crypto. The bill also restricts them from holding leadership positions at digital asset companies.
As crypto legislation collides with politics, progress on the market structure bill may face serious delays. The battle over Trump’s crypto connections signals deeper divisions over the future of digital assets in the U.S.