Democrats Launch Anti-Crypto Corruption Week Amid Republican Digital Asset Bills

US Democrats have launched an "Anti-Crypto Corruption Week" in response to House Republicans' plans to address three digital asset bills. This move comes as a counter to the Republicans' "Crypto Week," which aims to pass legislation on payment stablecoins, crypto market structure, and central bank digital currencies (CBDCs).

House Financial Services Committee ranking member Maxine Waters and digital assets subcommittee ranking member Stephen Lynch are leading the Democratic opposition. They argue that the proposed bills lack necessary consumer protections and national security measures, and could potentially facilitate what they term as "Trump's crypto corruption."

The three bills in question are the GENIUS Act, the CLARITY Act, and the Anti-CBDC Surveillance State Act. The GENIUS Act, which passed in the Senate, seeks to provide regulatory clarity for digital assets. The CLARITY Act aims to establish a clear regulatory framework for cryptocurrencies, while the Anti-CBDC bill is designed to prevent the Federal Reserve from issuing a CBDC.

Democrats, including Senator Elizabeth Warren, have expressed concerns about the potential for corruption and misuse of power in the digital asset space, particularly in light of Donald Trump's reported investments in the crypto industry. Trump reportedly added about $620 million to his personal portfolio in a matter of months due to his investments in the crypto industry, including his family-backed business World Liberty Financial.

The outcome of this political battle remains uncertain, given the slim majority Republicans hold in the House. However, it is clear that the regulation of digital assets will continue to be a contentious issue in the US. The Democrats' "Anti-Crypto Corruption Week" is a significant development in this ongoing debate, and it remains to be seen how the Republicans will respond to this challenge.

The efforts to pass a crypto market structure bill seem to be shifting to the Senate. In June, Senate Banking Committee Chair Tim Scott, White House crypto adviser Bo Hines and Wyoming Senator Cynthia Lummis said the chamber would work toward drafting, introducing and passing a bill by Sept. 30, before the House announced its “crypto week” plans for the CLARITY Act. A market structure bill would likely clarify the roles significant US financial regulators would have over digital assets, specifically the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The proposed bill in the House suggested giving more authority to the CFTC for the registration and regulation of digital assets.