On May 6, 2025, U.S. House Democrats walked out of a hearing on digital assets to protest President Donald Trump's crypto activities, highlighting a rift in bipartisan support for industry legislation. Is this the end of the crypto regulatory framework? Let's analyze in detail.
Democrats Walk Out of Hearing: Opposing Trump
At the House Financial Services Committee hearing on Tuesday, Representative Maxine Waters (D-CA) led the Democratic group to walk out from the start, preventing the session from proceeding. Tensions flared when Representative Stephen Lynch (D-MA) shouted that Trump made $2.9 billion from crypto – nearly 40% of his assets – while Representative Bryan Steil (R-WI) called for a halt. After that, Waters and several others left to hold a separate roundtable on Trump's 'crypto corruption.' Waters told Decrypt that the goal is to force additional provisions into the stablecoin and market structure bills, prohibiting the president from engaging in crypto business while in office – a point the Republicans rejected last month.
Reasons for Opposition: Trump's Personal Interests
Waters criticized #TRUMP 'brazenly' owning a crypto and stablecoin company, 'enriching himself and his family, enticing investors by inviting them to the White House.' Trump recently announced a dinner at the golf club for the 220 largest holders of the meme coin $TRUMP, with the top 25 being personally hosted and touring the White House. Many American companies have purchased millions of dollars in $TRUMP tokens to gain access to the president. Last week, at a crypto conference in Dubai, Trump's son revealed a $2 billion deal with #UAE through World Liberty Financial (WLF) and stablecoin USD1, causing outrage in the Democratic party.
Hearing Takes a Turn: Contrarian Opinions
The initial hearing focused on a draft bill for a new market structure, removing the SEC's oversight of major tokens. After the Democrats left, the event turned into an unofficial roundtable with mostly Republican members. Greg Tusar (Coinbase) positively evaluated the draft: 'This is a strong step forward.' Steil criticized the Democrats for leaving, arguing that it hinders necessary regulation: 'If we don't regulate, the risks will be greater.' Lynch, one of the few Democrats who stayed, warned: 'Trump is showing that democracy is dying. You want credibility and trust, but Trump does not bring that.'
Impact on the Crypto Market
This event sends many signals:
Increasing legal pressure: Bipartisan rift slows the market structure bill and the GENIUS Act (stablecoin), affecting Bitcoin ($94,000) and altcoins.
Short-term volatility: $TRUMP rose 50% due to the gala, but the controversy may hinder the ETF (which attracted $1.8 billion last week).
Long-term impact: If no agreement is reached, the crypto regulatory framework could be delayed, affecting fund inflows ($3.4 billion last week).
Future Outlook
Despite tensions, the demand for crypto regulation remains high with a stablecoin market cap of $240 billion. If bipartisan agreement is reached in the next 1-2 years, the market could benefit from a clear regulatory framework, especially with the forecast of $330 billion accumulating in Bitcoin by 2029 (Bernstein).
Conclusion: Will Trump Ruin the Future of Crypto?
House Democrats walk out of the hearing, protesting Trump's 'crypto corruption' – from the $TRUMP gala to the $2 billion WLF deal. This action delays important legislation, threatening bipartisan support. Investors need to closely monitor to assess the impact on the crypto market amidst this chaos.
Risk warning: Crypto investments carry high risks due to price volatility and legal uncertainty. Please consider carefully before participating. #anhbacong
