House Republicans Introduce Digital Asset Bill Amid Trump Crypto Scrutiny

US President Donald Trump’s crypto dealings are under intense scrutiny as House Republicans introduce a digital asset bill. The draft legislation, unveiled on May 5, aims to establish a regulatory framework for the digital asset market, addressing the treatment of digital assets by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

The bill includes provisions that require the SEC and CFTC to issue joint rules defining digital commodities, specifying that transactions involving these commodities would not be considered an offer or sale of an investment contract, provided the purchaser does not hold an ownership interest or other interest in the revenues, profits, or assets.

Democrats, led by House Financial Services Committee Ranking Member Maxine Waters, are preparing a united response to Trump’s deepening connections with the crypto industry. Waters plans to lead some members of her party out of a Republican-led hearing on digital assets, scheduled for May 6. The hearing, titled “American Innovation and the Future of Digital Assets,” is chaired by Committee Chair French Hill and could address the draft legislation proposed by Republican lawmakers.

Waters has requested that Hill and Republicans amend any proposed legislation to explicitly prevent potential conflicts of interest, where Trump could personally enrich himself through crypto ventures. Hill and other top Republicans have echoed some of Trump’s talking points on crypto, suggesting deference to the president’s previously announced policies, such as making the US a “crypto capital of the world.”

The scrutiny on Trump’s crypto dealings comes amid calls for his impeachment after he offered some of his top memecoin holders the opportunity to tour the White House and attend a private dinner. The president’s family has also backed World Liberty Financial, which recently launched its own stablecoin, and an Abu Dhabi-based investment firm used the USD1 stablecoin to settle a $2 billion investment in Binance.

At least two senators supportive of Trump have criticized his memecoin dinner, hinting that the president was selling access to his office. The situation remains fluid, with further developments expected as the story unfolds.