Crypto crisis among US lawmakers: Tension has risen significantly.

Tensions between Democrats and Republicans in the U.S. House of Representatives have escalated over President Donald Trump's connections in the crypto world. While lawmakers were supposed to hold a joint meeting on crypto regulations, they effectively split into two separate meetings.

Accusation of "crypto corruption" against Trump

According to The Block's report, in a hall in the Capitol, senior Democratic member of the House Financial Services Committee Maxine Waters chaired a meeting focused on issues described as "Trump's crypto corruption and conflicts of interest." In her speech here, Waters stated, "I am deeply concerned that Republicans not only ignore Trump's corruption but also legitimize the efforts of Trump and his family to enrich themselves."

They boycotted and left the session

Democrats also boycotted the crypto session that was planned to be jointly held by the House Financial Services Committee and the Agriculture Committee yesterday. Waters noted that Trump refused to attend the meeting due to the impact of cryptocurrency assets and federal institutions.

Republican lawmakers continued the meeting. Along with Waters, Democratic lawmakers Sean Casten and Brad Sherman left the room.

This division among lawmakers occurred while efforts were ongoing to pass bills that would determine stablecoins and broader crypto regulations. Lawmakers are facing heated debates, particularly over the stablecoin bill dubbed "GENIUS." Democrats emphasized that there are many shortcomings in the bill that need to be addressed. Stricter requirements for foreign companies are especially desired, and provisions regarding anti-money laundering measures are found to be insufficient. Democrats have frequently expressed their concerns about Donald Trump's role in the crypto market during this process.

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Tension continued on social media as well

The tension between the two sides continued on social media as well. A post was made from the X account of the House Agriculture Committee, which has a Republican majority, stating, "Maxine Waters left in a hurry while adults remained in the room. Republicans and Democrats are working together to provide clarity in the digital asset space." A harsh response came from the X account of the House Financial Services Committee, which is controlled by the Democrats, stating, "It is tragicomic that these words come from the 'party of adults' that is afraid to speak out against a president who breaks the law right in front of our eyes. What is this fear of Donald Trump? Have a little courage, cowards."

The Agriculture Committee later shared a video of Waters sending a kiss to Sam Bankman-Fried, the former CEO of FTX who is currently in prison.

"The trend may pressure the market"

According to Matt Hougan, the Chief Investment Officer of the asset management company Bitwise, the stagnation of regulatory processes in the U.S. could put pressure on the crypto market. Hougan noted that Congress risks "not kicking the ball into an empty goal" regarding crypto regulations, stating that if legal efforts are disrupted, the summer months could be challenging for the crypto market. Nevertheless, Hougan predicts that if the necessary laws are passed, Bitcoin could rise above $200,000 and many cryptocurrencies could reach new peaks.

Published: May 7, 2025 00:13