California Representative Maxine Waters, the leading Democrat on the House Financial Services Committee, utilized her opening remarks during a markup hearing to castigate former President Donald Trump for his business and ethical connections to the cryptocurrency sector, particularly highlighting the stablecoin initiative from a company associated with his family.
Speaking to her fellow lawmakers at a hearing on April 2, Waters claimed that Trump exploited his presidential role to capitalize on “multiple crypto schemes” for his financial gain, notably including the US dollar-pegged stablecoin introduced by World Liberty Financial (WLFI), which is backed by his family.
The California representative pointed out Trump’s memecoin that debuted in January, his intentions to create a national cryptocurrency reserve, and “his own stablecoin,” referencing WLFI’s USD1 token that was launched in March.
Rep. Maxine Waters addressing the House Financial Services Committee on April 2.
“With this stablecoin legislation, this committee is establishing an unacceptable and perilous precedent, legitimizing the president and his associates’ attempts to create regulations that will benefit themselves at the cost of everyone else,” stated Waters, adding:
“Trump likely desires the entire government to utilize stablecoins for payments made by the Department of Housing and Urban Development, Social Security disbursements, and tax payments. And which coin do you think he would suggest replacing the dollar with? His own, naturally.”
Waters is not alone in her condemnation of Trump’s ventures in cryptocurrency, as numerous lawmakers and experts from various political backgrounds have raised concerns regarding possible conflicts of interest.
Committee Chair French Hill, who spoke on the topic of stablecoins prior to Waters, reportedly remarked that the involvement of the Trump family in the sector complicates the legislative process.
“If there is no measure in place to prevent the President of the United States from owning a stablecoin business […] I will never be able to support this bill, and I urge other members not to enable this situation,” Waters asserted.
Related: Concerns about regulatory influence in Washington regarding cryptocurrency
Representative Bryan Steil, who proposed the Stablecoin Transparency and Accountability for a Better Ledger Economy, or STABLE Act, did not immediately respond to Waters’ criticisms regarding Trump’s stablecoin, but he did speak about the need for consumer protections.
Hill avoided mentioning Trump in his opening remarks but conveyed that a “clear federal framework” for payment stablecoins is necessary.
Current Developments in Crypto Legislation
The committee will review amendments to the STABLE Act alongside proposals aimed at tackling illicit finance linked to emerging financial technologies and preventing the government from issuing a central bank digital currency (CBDC).
The markup hearing was an essential step before the committee’s vote on whether to progress the bills to the House of Representatives.
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