Crypto Bills Spark Fears of Wall Street Giveaways, SEC Power Loss

As U.S. lawmakers prepare to vote on two significant crypto bills, the CLARITY and GENIUS Acts, Rep. Maxine Waters has expressed serious concerns. She warns that these proposals could lead to dangerous giveaways to Wall Street, Big Tech, and even the Trump family.

In a recent article, Waters cautioned that the new legislation could strip the Securities and Exchange Commission (SEC) of its enforcement powers, posing threats to investor safety and allowing bad actors to operate with minimal oversight.

Waters’ central concern is that the bills would strip enforcement power from the SEC, forcing regulators to act only after damage is done. She warned that if these bills pass, the U.S. could face its first crypto financial crisis.

She also criticized the GENIUS Act for weakening oversight on stablecoins and allowing decentralized finance (DeFi) platforms to operate outside of financial regulations. This could potentially invite national security threats and untraceable foreign influence.

Adding to the alarm, both bills appear to give DeFi projects a free pass from most compliance responsibilities, something Waters believes could open the U.S. market to untraceable foreign-controlled crypto firms.

The debate over these bills comes amid growing scrutiny of Donald Trump’s involvement in the crypto space. From promoting memecoins and NFTs to co-founding ventures like World Liberty Financial, the Trump family’s deepening ties to digital assets have sparked accusations of self-dealing. Plans for a utility token for Truth Social and a recent ETF filing have only intensified these concerns.

House Democrats even staged a walkout during a recent digital assets hearing, accusing Trump of “crypto corruption” and warning that his personal interests could influence legislative outcomes. Senator Elizabeth Warren labeled Trump’s crypto-themed events as an “orgy of corruption,” demanding more transparency.

This debate isn’t just a domestic one. America’s approach will set a global precedent. Clear regulation is needed but caution is advised against swinging too far in favor of deregulation without robust checks.

The week ahead in Congress is being closely watched by both markets and global regulators. If the bills pass as-is, they could legitimize industry shortcuts, embolden politically connected crypto ventures, and further entrench the influence of Wall Street and Big Tech over digital assets.