Rising Tensions Ahead of Congressional Crypto Hearing
House Democrats are reportedly planning to walk out of a joint congressional hearing on cryptocurrency regulation scheduled for Tuesday. The decision, first reported by Punchbowl News and Politico, stems from mounting concerns over former President Donald Trump’s growing involvement in the crypto space.
Rep. Maxine Waters, the top Democrat on the House Financial Services Committee, is expected to lead the walkout. Her office has not issued a formal response, but a Democratic source confirmed that an alternative roundtable is being organized by Democrats.
Republicans Call for Bipartisan Participation
House Financial Services Committee Chair French Hill’s office responded by encouraging bipartisan collaboration. “Since the last Congress, we’ve had productive bipartisan, bicameral discussions on market structure legislation,” a spokesperson said. “We encourage the Ranking Member to attend tomorrow’s hearing to express her views and reconsider her decision to object.”
The upcoming hearing, hosted by both the House Financial Services and Agriculture Committees, is titled “American Innovation and the Future of Digital Assets: A Blueprint for the 21st Century.” Republicans released a new discussion draft of the crypto regulation bill on Monday, continuing a multi-year effort to establish a legal framework for the industry.
Stablecoin Bill Faces Pushback from Senate Democrats
In parallel, a separate piece of legislation targeting stablecoin regulation has advanced in Congress but now faces resistance from Senate Democrats. On Saturday, several Democratic senators, including Mark Warner, Raphael Warnock, and Adam Schiff, issued a joint statement warning that the current version of the bill contains unresolved issues.
“While we are eager to continue working with our colleagues to address these issues, we would be unable to vote for cloture should the current version of the bill come to the floor,” the statement read.
Trump’s Crypto Ventures Fuel Democratic Concerns
Much of the Democratic resistance is tied to Trump’s deepening presence in the digital asset industry. In recent months, questions have surfaced around Trump-linked crypto initiatives, including a DeFi protocol, various memecoins, NFTs, and a newly launched stablecoin backed by World Liberty Financial.
Chair Hill has acknowledged the complications Trump’s crypto ventures introduce to policymaking. “That engagement in memecoin activity and the formation of a stablecoin have made our work more complicated,” Hill said earlier this year.
Rep. Waters has gone further, accusing Trump of using digital assets for personal gain. “This Committee voted to make Trump the King of Crypto,” she said last month. “Instead of stopping this grift, you are enabling it. Mr. Chairman, we need to stop Trump before we take any further steps on crypto legislation.”
