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Just months after taking a euphoric victory lap around Washington to celebrate the new administration, it would appear the crypto industry has a Trump problem.
2025 was supposed to be a historic year for crypto legislation. With a favorable White House and established bipartisan support for policy, lawmakers and industry members expected to have new laws passed before midterm elections.
But, as Ben wrote about yesterday, nine Democrats pulled support for the current version of the stablecoin-focused GENIUS Act. They cited wanting stronger provisions around anti-money laundering and national security, for example.
Then there are concerns over the president’s family’s crypto business endeavors. Thanks to Trump’s memecoin launch in mid-January, tensions have been building since before Inauguration Day. In the months since, World Liberty Financial (the Trump family’s crypto venture) has floated stablecoin plans and recruited investors.
Many Democrats, like Financial Services Ranking Member Maxine Waters, insist this is a clear conflict of interest, and lawmakers should not be advancing policy that would directly benefit Trump’s business initiatives.
“I am deeply concerned that Republicans aren’t just ignoring Trump’s corruption, they are legitimizing Trump and his family’s efforts to enrich themselves on the backs of average Americans,” Waters wrote in a Tuesday statement after she objected to a planned joint House hearing on crypto.
“Through his crypto businesses, Trump has turned the office of the presidency into a personal money-making machine,” she added.
The comments come after members of the House Financial Services and Agriculture committees gathered this morning for a joint hearing on the newly released crypto market structure bill discussion draft.
The hearing didn’t get very far, though, as Waters objected to the gathering. Because unanimous approval is needed for joint hearings, she was successful in stopping the official proceedings.
Digital Assets Subcommittee Chair Bryan Steil pivoted, and called for a roundtable discussion — a loophole allowing the witnesses to provide testimony and answer lawmakers’ questions. Waters then left the room, asking colleagues to join her for a separate meeting to discuss Trump’s crypto dealings.
Financial Services Committee Chairman French Hill countered Waters, noting the market structure draft and the stablecoin-focused STABLE Act are intended to bring crypto out of regulatory purgatory. The bills, he said, seek to fill gaps in oversight that even President Biden admitted existed. Up until recently, they had significant bipartisan support.
Crypto lobbying groups and Hill insiders have known for weeks that these legislative efforts would face roadblocks from Democrats.
Groups have even proposed combining the market structure and stablecoin bills into a single piece of legislation. The theory was that it’s extremely unlikely lawmakers will pass two crypto bills, but the problem with one super bill is it gives everyone a lot more to fight over.
The new market structure discussion draft in the House is similar to bills from the last session of Congress: FIT21 in the House and DCCPA in the Senate.
Generally speaking, the legislation seeks to clarify the roles of the SEC and CFTC. It also outlines the process for listing tokens, consumer protections and disclosure requirements. A big difference between this draft and FIT21 is that the new version does not include the term “decentralized system.” A key criticism of FIT21 was that the focus on “decentralization” was too great, potentially making it more challenging for certain token issuers to be compliant.
The key term here though is really “discussion draft.” The industry can now submit comments on the bill, so we’re still several steps away from a floor vote.
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