U.S. Congress Faces Deepening Divide Over Crypto Legislation
According to Cointelegraph, the political divide in the U.S. Congress regarding digital assets is intensifying as House Democrats prepare to counter Republican efforts to advance three significant crypto-related bills. On Friday, House Financial Services Committee ranking member Maxine Waters and digital assets subcommittee ranking member Stephen Lynch announced their intention to lead Democratic opposition against what they describe as "dangerous" legislation proposed by Republicans. Earlier this month, Republican leaders declared their plans to address bills concerning payment stablecoins, crypto market structure, and central bank digital currencies (CBDCs) starting Monday.
Waters criticized the Republican initiative, stating, "[Republicans are] doubling down by fast-tracking a dangerous package of crypto legislation through Congress." She argued that the proposed bills lack essential consumer protections and national security measures, potentially implicating Congress in what she termed as U.S. President Donald Trump's "unprecedented crypto scam." With a narrow majority in the House, it remains uncertain whether Republicans can secure enough support to pass all three bills, especially given the opposition from Democrats like Waters and Lynch.
The GENIUS Act, aimed at regulating stablecoins, has already passed in the Senate despite initial Democratic resistance. However, discussions around crypto legislation frequently involve debates over President Trump's crypto ventures. Lynch accused his Republican colleagues of prioritizing the crypto industry's interests while ignoring potential vulnerabilities and opportunities for abuse within the sector. Reports suggest Trump significantly increased his personal wealth through crypto investments, including his family-backed business, World Liberty Financial, which has faced scrutiny for issuing its own stablecoin, USD1.
The three crypto bills under consideration include the GENIUS Act, the Anti-CBDC Surveillance State Act, which seeks to prevent the development of a U.S. government-issued digital dollar, and the CLARITY Act, designed to establish a digital asset market structure. On Friday, White House crypto adviser Bo Hines expressed confidence on X that the GENIUS Act would pass the chamber without amendments, expediting its progress to the president's desk. Meanwhile, efforts to pass a crypto market structure bill appear to be shifting to the Senate. In June, Senate Banking Committee Chair Tim Scott, along with Hines and Wyoming Senator Cynthia Lummis, announced plans to draft, introduce, and pass a bill by September 30, prior to the House's "crypto week" plans for the CLARITY Act.
House Financial Services Committee Chair French Hill stated on a podcast that the market structure bill would be the best draft debated in the House since 2023. The bill is expected to clarify the roles of major U.S. financial regulators, particularly the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), in overseeing digital assets. The proposed legislation suggests granting the CFTC more authority over the registration and regulation of digital assets.
