KEY POINTS
- Rep. Waters and two other Democratic lawmakers walked out of a scheduled hearing to discuss crypto legislation
- Republican Troy Downing said 'regulation by enforcement' must be eliminated to promote innovation
- GOP's Zach Nunn urged lawmakers to help establish a 'clear structure' for crypto businesses
- Dem Rep. Garcia argued that Trump is prioritizing his crypto projects over the country
- Dem Rep. Lynch said Trump, through his crypto ventures, 'blatantly violated the ethics laws'
Republican and Democratic lawmakers on Sunday held separate cryptocurrency roundtables to discuss crypto policy and recent developments around the emerging sector as Dems and some crypto users raise issue with U.S. President Donald Trump's crypto ventures.
World Liberty Financial (WLFI), a DeFi project that Trump has promoted and where his three sons, particularly Eric Trump, are involved in, was most recently in question over a deal with Abu Dhabi government-backed firm MGX and crypto titan Binance.
Republicans Urge Crypto Innovation, Rulemaking Clarity
In the joint roundtable by Republican members of the House Committee on Agriculture and House Committee on Financial Services, Rep. Troy Downing of Montana said the Securities and Exchange Commission (SEC) under ex-Chair Gary Gensler made it difficult for digital asset innovators to raise capital.
If we want digital asset innovation to thrive in the United States, we need clear rules of the road, not regulation by enforcement.
— Congressman Troy Downing (@RepTroyDowning) May 6, 2025
The unprecedented dual effort between @FinancialCmte and @HouseAgGOP is making this possible.
📺 Watch my questions from today’s roundtable 👇 pic.twitter.com/nWbLbsF0YQ
He said that in order to ensure the United States' leadership in crypto, there must be clear rules of the road and "regulation by enforcement" should be eliminated.
Similarly, Rep. Zach Nunn of Iowa urged clear rules for crypto businesses, arguing that prior administrations added to the confusion around rules. He called for legislation to establish a "clear structure" for the industry.
Some digital assets are like a chocolate coin. When the coin is "wrapped" it's treated like a security. Once "unwrapped" it functions like a commodity. We can't have two different rules for our digital innovators, which is why we're fighting on @FinancialCmte for a clear… pic.twitter.com/zDXDzvCyKx
— Congressman Zach Nunn (@ZachNunn) May 6, 2025
Democrats Raise Concerns Over Trump's 'Crypto Corruption'
As the Republicans' roundtable ensued, Democratic members, led by ranking member Rep. Maxine Waters of California, held their own roundtable in a different room on Capitol Hill.
Notably, Waters objected to a Sunday bipartisan hearing, arguing that House rules require "unanimous consent" to such hearings. She walked out of the hearing after stating that she objects to the hearing because of Trump's "corruption" and "ownership of crypto."
Today, Ranking Member @RepMaxineWaters blocked a Republican crypto hearing after the GOP refused to address Trump’s rampant crypto corruption. Instead, the Ranking Member walked out and convened a Democratic hearing to discuss how Trump is using the presidency to enrich himself… pic.twitter.com/v8wC3s3brf
— House Committee on Financial Services - Democrats (@USHouseFSC) May 7, 2025
Democratic Reps. Sean Casten and Brad Sherman also left the room. Waters later said GOP Committee members refused to discuss Trump's "corruption" in relation to his crypto ventures, which is why she objected to the hearing.
In the Democrats' roundtable, Rep. Sylvia Garcia of Texas pointed out how Trump and his three sons were involved in WLFI's business. As per the project's website and photos of the website's "Team" presented by the congresswoman, the president is the company's "chief crypto advocate," while his three sons were "Web3 ambassadors."
Trump isn’t just pushing crypto—he’s using the presidency to cash in on it.
— Rep. Sylvia Garcia (@RepSylviaGarcia) May 6, 2025
His friends and family are running shady firms like World Liberty Financial while he guts the rules meant to protect hard-working Americans from fraud and abuse. This is pure corruption.@USHouseFSC pic.twitter.com/FSK2g48aOo
"So instead of prioritizing his job as our nation's leader, he [Trump] is using his position to strip financial regulators of their independence, all to line the pockets of his friends, his family," Garcia said.
Rep. Stephen Lynch of Massachusetts said it has never happened in U.S. history where a president has "so blatantly violated the ethics laws" amid concerns of conflicts of interest over Trump's crypto involvement.
President Trump’s blatant violation of ethics laws and exploitation of the Presidency to further his own financial gain cannot go unchecked.
— Rep. Stephen F. Lynch (@RepStephenLynch) May 6, 2025
I will continue to work with my Democratic colleagues to hold this Administration accountable. pic.twitter.com/Rlwh1hrQpO
He also made sure to call out the "outrageous" private dinner Trump promoted for the top holders of his official meme coin. "That just screams government for sale right there," Lynch said.
Trump has yet to comment on the latest development wherein his crypto involvement is at center of lawmaker tensions.
