Washington, D.C. — Day 4 of Crypto Week in the U.S. House of Representatives has revealed deep divisions among lawmakers over the future of digital asset legislation. While both parties acknowledge the importance of establishing a regulatory framework for cryptocurrencies and stablecoins, key bills remain stalled due to political disagreements.
Divided Opinions on GENIUS and Clarity Acts Delay Progress
Among the primary pieces of legislation under debate are the GENIUS Stablecoin Bill, the Clarity Act, and the Anti-CBDC Surveillance State Act. These bills are intended to provide legal clarity, establish consumer protections, and define how digital assets can be used and regulated by government entities.
Votes on these bills were expected Thursday, but disagreements over key amendments — especially concerning executive branch involvement in crypto — have slowed momentum.
Representative French Hill (R-Ark.) advocated for the GENIUS bill, citing its consumer protection provisions and anti-money laundering measures. He emphasized that stablecoins, if regulated responsibly, could ensure American competitiveness in financial innovation.
Representative Maxine Waters of California argues that the crypto bills do not address conflicts of interest. Source
Democrats Raise Concerns Over Trump Family’s Crypto Ties
However, Democrats pushed back, citing conflicts of interest in the bills’ current form. Representative Maxine Waters (D-Calif.) criticized the omission of any restrictions on the President and Vice President owning or promoting crypto businesses.
“This bill restricts members of Congress, but not the President or Vice President. That’s a serious oversight,” Waters said, referencing the Trump family’s crypto ventures.
The concern from Democrats stems from fears of executive influence over digital assets, especially if top officials are financially involved in crypto-related businesses. This issue threatens to erode bipartisan support and could force revisions that dilute the bills’ effectiveness.
Stablecoin Reserves and National Security Also Debated
Another major point of contention is how stablecoins are backed. While some reserves include cash and Treasury securities, Waters highlighted that the proposed law would allow for uninsured deposits, which she argues could destabilize the financial system.
Backing stablecoins with other digital assets could trigger a financial crisis, leading to taxpayer-funded bailouts, critics warned.
What’s Next for U.S. Crypto Policy?
As lawmakers continue to debate the intersection of innovation and oversight, it’s clear that crypto regulation is not a partisan issue—but a deeply complex one. The outcome of Crypto Week could shape how the U.S. approaches stablecoins, CBDCs, and digital asset governance for years to come.
Disclaimer
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