TLDR
Waters says Clarity Act limits SEC’s fraud enforcement powers in crypto.
GENIUS Act mandates stablecoin backing but lacks regulator funding.
Trump-linked ventures hold about $620M in crypto-related assets.
House to vote on two major crypto bills during 2025’s Crypto Week.
As the U.S. House of Representatives prepares for what is being called “Crypto Week,” Democratic Representative Maxine Waters has raised strong objections to two key cryptocurrency bills, warning they could weaken oversight and increase fraud risk. The Clarity and GENIUS Acts are expected to be debated this week, with a stablecoin bill possibly reaching President Donald Trump’s desk by Friday.
Rep. Waters Raises Concerns About Crypto Legislation
Representative Maxine Waters expressed firm opposition to the GENIUS and Clarity Acts in a published opinion piece on MSNBC.
She wrote that both bills risk legalizing fraudulent behavior in the cryptocurrency space.
Waters stated that the legislation “could open the floodgates to massive fraud and financial ruin for millions of American families.” She said the proposed laws limit regulators’ ability to act against fraudulent behavior and weaken consumer protections.
Key Crypto Bills Set for Debate in the House
The House is scheduled to review two major crypto-related bills this week. The Clarity Act, expected for vote on Wednesday, and the GENIUS Act, likely to be considered on Thursday, are central to upcoming discussions.
The GENIUS Act, already passed by the Senate, would establish federal rules for stablecoins. It mandates that stablecoins be backed 1:1 by U.S. dollars or similar liquid assets. The bill outlines basic consumer protections but does not allocate funding for regulators to enforce the rules.
The Clarity Act, in contrast, seeks to divide responsibilities between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). It would also require crypto firms to maintain asset separation and offer financial disclosures to retail users.
Criticism Over Trump’s Crypto Involvement
Waters also pointed to what she referred to as President Trump’s connection to the cryptocurrency industry. According to estimates reported by Bloomberg, the Trump family holds approximately $620 million in crypto-related investments.
In her article, Waters stated, “They would legitimize and legalize the unprecedented crypto corruption by the president of the United States.” Her comments suggest concerns about potential conflicts of interest influencing current legislative decisions.
These claims come as Trump has shown increased support for cryptocurrency initiatives during his presidency. Some observers expect his administration to sign off on the stablecoin bill if it clears the House by the end of the week.
Concerns Over Regulatory Limitations and Consumer Protection
One of Waters’ major concerns is that the Clarity Act could prevent the SEC from acting against crypto fraud in a proactive way. She said that the bill “handcuffs the Securities and Exchange Commission” and reduces its authority to safeguard users.
Waters also criticized the GENIUS Act for lacking enforcement power. She noted that no federal funding was included to support regulatory oversight, and that consumer protections are not clearly defined.
Supporters of the bills as a result argue that the GENIUS Act will provide clarity for stablecoin issuers and offer basic safeguards for users. They claim that the Clarity Act would help streamline compliance by assigning specific duties to different federal agencies.
However, despite these positions, the upcoming votes are expected to draw close attention from both sides of the political spectrum and from industry stakeholders. The outcomes could shape the future of U.S. crypto regulation for years to come.
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