Republicans and Democrats tussled over the Trump family’s crypto ties, consumer protections, and backing stablecoins with fiat assets.
As day four of “Crypto Week” kicks off, US Democratic and Republican lawmakers remain divided on the future of key legislation that will shape the country’s regulatory approach to digital assets.
Votes were anticipated on the Clarity Act, the GENIUS stablecoin bill and the Anti-CBDC Surveillance State Act, but progress has been slowed by political gridlock on amendments, including proposals to bar government officials from trading cryptocurrencies.
The fourth day of the so-called Crypto Week started Thursday with US lawmakers in the House of Representatives debating consumer protections, anti-money laundering provisions, the development of a central bank digital currency, banking protections and preventing conflicts of interest in the executive branch.
“This is a multi-congress priority item, and it ensures American competitiveness,” Representative French Hill said about the GENIUS stablecoin bill, while arguing that the revised version of the bill included robust consumer protections and anti-money laundering provisions.
Democratic Representative Maxine Waters, an outspoken critic of US President Donald Trump and his family’s involvement in the crypto sector, argued that the bills do not address conflicts of interest regarding the family’s digital asset ventures. Waters said:
“This bill has a policy statement that elected officials like members of Congress and senators, as well as government officials, cannot issue their own stablecoin, but do you know who Republicans did not ban? The president and the vice president are the only elected officials who can have a crypto business.”
Barring the executive branch from issuing, endorsing and promoting cryptocurrencies has become a major pain point for Democratic lawmakers, who initially supported comprehensive digital asset regulation. The loss of Democratic support could threaten the passage of the bills or force concessions that are unfavorable to the crypto industry.
Related: CLARITY Act isn’t perfect, but it’s the bill US Congress must pass this summer
Secondary issues argued by US lawmakers
Although limiting the Executive Branch’s involvement in the sector was the most common issue cited by opposing Democratic lawmakers, and is the subject of Senator Adam Schiff’s Curbing Officials’ Income and Nondisclosure Act (COIN), national security and financial stability were also debated.
“While some of the [stablecoin] reserves are cash and short-term Treasury Securities, this bill allows for uninsured deposits,” Waters said.
The California lawmaker added that backing stablecoins with other digital assets destabilizes the financial system and can lead to a bank run, where the cost of bailing out institutions is borne by the US taxpayer.
Magazine: Bitcoin vs stablecoins showdown looms as GENIUS Act nears
