Maxine Waters Accuses Trump of Leveraging Crypto for Profit

California Representative Maxine Waters, the ranking member of the US House Financial Services Committee, criticized Donald Trump’s business and ethical entanglements with the crypto industry during a markup hearing. Waters highlighted Trump’s involvement in multiple crypto schemes, including the launch of a stablecoin by World Liberty Financial (WLFI), a firm backed by his family.

Waters alleged that Trump had used his presidential position to leverage these schemes for profit, pointing to his memecoin launched in January, his plans for a national cryptocurrency stockpile, and WLFI’s USD1 token launched in March. She expressed concern that Trump might push for the widespread use of stablecoins in government payments, potentially replacing the US dollar with his own stablecoin.

Waters’ criticism was not isolated; 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 Trump’s family 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.

The committee is considering amendments to the STABLE Act, which aims to establish safeguards for consumers using payment stablecoins. The act, introduced by Representatives Bryan Steil and French Hill, seeks to create a clear federal framework for regulating payment stablecoins. 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 debates about potential conflicts of interest and the need for transparent regulation. Critics argue that such a move could undermine public trust in the financial system and create ethical dilemmas.

Various stakeholders have called for changes in stablecoin regulations. For instance, Coinbase CEO Brian Armstrong has urged lawmakers to revise stablecoin regulations to allow consumers to earn interest on their stablecoin holdings. However, this proposal has met with resistance from some lawmakers who argue that there is no consensus on Capitol Hill to allow stablecoins to generate yield for users.

The GENIUS Act, which calls for shared oversight of stablecoins, has also sparked controversy. Some view it as a step towards creating a more cohesive regulatory framework, while others see it as a potential source of confusion and inefficiency.

In summary, the allegation that Trump wants to replace the US dollar with his stablecoin has highlighted the growing importance of stablecoins in the financial landscape and the need for clear and effective regulation. As Congress continues to grapple with these issues, the outcome of these debates will have significant implications for the future of digital currencies in the US.