Maxine Waters' legislative proposal was announced just hours before a private cryptocurrency dinner organized by Donald Trump. It seeks to prohibit the president, vice president, and members of Congress, as well as their immediate family members, from issuing, owning, or promoting cryptocurrencies during their term.
According to Maxine Waters, the cryptocurrency bill is designed to prevent public officials from using their political influence for financial gain from digital assets. It would prohibit officials from receiving any direct or indirect compensation for the marketing, mining, or trading of cryptocurrencies in the U.S.
The bill also aims to prevent the trading of digital assets when a government official possesses important non-public information. Waters stated:
“Trump's cryptocurrency scam is not just a scheme to attract investors; it’s also a dangerous backdoor for selling influence.”
The legislation arises amid growing interest in Trump's connections to cryptocurrency projects. In January, Trump and his associates launched a memecoin, with some tokens linked to Melania Trump. Subsequently, the Trump family introduced USD1, a stablecoin backed by dollars and issued through World Liberty Financial.
Waters referenced these companies, raising concerns about potential conflicts of interest and ethical risks. The USD 1 stablecoin, despite its recent inclusion on Binance, currently operates without clear federal oversight, and few details have been published about its structure.
Moreover, reports suggest that Trump's children support plans for a national Bitcoin reserve and are linked to mining operations. Waters and other lawmakers have pointed to these events as examples of political figures getting too involved in the world of cryptocurrencies.
Maxine Waters scheduled the bill announcement to coincide with a Trump fundraising event at the Trump National Golf Club. Trump's private dinner on cryptocurrencies is expected to gather 220 people, significant holders of Trump's meme coin and supporters of his cryptocurrency projects.
Democratic lawmakers and consumer advocacy groups have planned responses to the event. Senators Elizabeth Warren and Chris Murphy, along with Public Citizen, will hold a press conference on the same day. Two Democratic groups have also organized protests outside the dinner venue.
Waters criticized the event for rewarding those who financially backed the tokens linked to Trump, suggesting it could provide special access to individuals investing in his businesses.
“We are witnessing a direct connection between political fundraising and the promotion of cryptocurrencies,” Waters stated.
