Trump's Crypto Ventures Spark Ethical Concerns, Waters Criticizes

California Representative Maxine Waters, the ranking member of the US House Financial Services Committee, criticized President Donald Trump’s business and ethical entanglements with the crypto industry during an April 2 hearing. Waters alleged that Trump had leveraged his position as president to profit from multiple crypto schemes, including the launch of a stablecoin by World Liberty Financial (WLFI), a firm backed by his family.

Waters highlighted Trump’s memecoin launched in January, his plans to establish a national cryptocurrency stockpile, and WLFI’s USD1 token launched in March. She expressed concern that Trump might push for the entire government to use stablecoins for payments, from the Department of Housing and Urban Development to Social Security payments and tax payments. Waters suggested that Trump’s stablecoin could replace the US dollar, raising significant ethical and regulatory concerns.

Waters is not alone in her criticism. Many lawmakers and experts across the political spectrum have suggested potential conflicts of interest in Trump’s crypto ventures. Committee Chair French Hill also acknowledged that the Trump family’s involvement in the industry complicates legislation. Waters emphasized that without efforts to block Trump from owning his stablecoin business, she would not support the stablecoin bill, urging other members not to be enablers.

Representative Bryan Steil, who introduced the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act, did not immediately address Waters’ concerns about Trump’s stablecoin. Instead, he focused on establishing safeguards for consumers. Hill, in his opening statement, called for a clear federal framework for payment stablecoins but did not mention Trump.

The committee is considering amendments to the STABLE Act, as well as bills to combat illicit finance using emerging financial technologies and to block the US government from issuing a central bank digital currency (CBDC). The markup hearing was a necessary step before the committee could vote on advancing the bills to the House of Representatives.

The allegation that Trump wants to replace the US dollar with his stablecoin has sparked a debate about the future of digital assets in the US. The controversy highlights the need for clear regulations and oversight to ensure that stablecoins are introduced responsibly. As lawmakers continue to grapple with the complexities of digital asset regulation, the outcome of these discussions will shape the future of the US financial system.