WASHINGTON, DC – Rep. French Hill, Chairman of the House Financial Services Committee in the 119th … More Congress (Photo by Anna Moneymaker) Getty Images ‘Corruption Tied To The President Of The United States’ A bipartisan push to bring clarity to U.S. digital asset markets was upended this week by a political dispute. Representative Maxine Waters, Democrat of California and ranking member of the House Financial Services Committee, blocked a joint hearing on cryptocurrency regulation that was scheduled for May 6. Waters cited President Trump’s financial ties to the crypto industry as grounds for postponing the session.
“Members of Congress have a solemn responsibility to protect and defend the American public. It’s time for Republicans to stand up to the brazen and blatant crypto corruption tied to the President of the United States and hold this President accountable,” said Waters in a statement . The digital asset sector remains without a clear regulatory framework.
Blockchain technology offers potential to modernize financial infrastructure, reinforce dollar dominance, and support innovation across industries. However, developers and businesses continue to operate in a legal gray zone. The Securities and Exchange Commission and Commodity Futures Trading Commission have overlapping but incomplete authority, creating uncertainty for investors and market participants.
Congress Is Trying To Regulate Crypto While Trump Complicates Effort A draft bill proposed by Republicans on the House Financial Services and Agriculture Committees aims to address this gap. It includes provisions for consumer protections, registration pathways for developers and exchanges, and a clearer division of responsibilities between the SEC and CFTC. The hearing became the subject of partisan disagreement.
On May 5, Waters announced she would not support the hearing unless Republicans agreed to add her proposed changes barring the president and members of Congress from owning or profiting from digital assets. Waters and others have described the situation as an unprecedented conflict of interest involving a sitting president. The Trump family is connected to crypto-related entities and token projects, including meme coins and a majority stake in their decentralized finance crypto exchange, World Liberty Financial.
In contrast to the president’s position, tech investor David Sacks disclosed that he had sold over $200 million in digital assets prior to accepting his White House role as 'AI and Crypto Czar.’ The move suggests that not everyone in the Trump administration seeks to profit personally from the crypto industry. According to a White House ethics memo , the move was intended to avoid any potential conflicts of interest. U.S. Risks Falling Behind Without Clear Market Structure Rules Industry figures, like Coinbase CEO Brian Armstrong, have expressed concern that the lack of regulation is pushing innovation offshore.
Armstrong urged lawmakers this week to pass stablecoin and market structure legislation before the August recess. “Both chambers need to act now,” Armstrong said . During today’s walk-out democratic hearing, simultaneous with the republican hearing, Representative Brad Sherman, Democrat of California, criticized the crypto industry’s perceived excesses by saying, “China is ahead of us in organ harvesting.
The Cayman Islands are ahead of us in nefarious financial transactions. We can afford to have a few areas where we’re not the leader.” Regardless of party affiliation or individual crypto holdings, the United States plays a pivotal role in shaping global standards for digital assets, consumer protection, and financial governance.
