The Democrats have initiated "Anti-Crypto Corruption Week" to directly counter Republican cryptocurrency legislation.
The cryptocurrency legislative battle in the U.S. Congress has officially ignited. House Financial Services Committee Chairwoman Maxine Waters and Digital Assets Subcommittee Chair Stephen Lynch announced on July 11 that next week will be designated as "Anti-Crypto Corruption Week," directly confronting the Republican-led "Cryptocurrency Week."
This Democratic initiative aims to unite party forces against several cryptocurrency-supporting bills currently under congressional review, including the (GENIUS Act), (CLARITY Act), and proposals aimed at preventing the creation of central bank digital currencies (CBDCs).
Waters stated in a statement, "The Republicans are rapidly advancing a dangerous set of cryptocurrency legislation," criticizing these bills for lacking urgently needed consumer protection and national security measures.
Lynch echoed similar views, warning that the (Anti-CBDC Act) could slow down the U.S. research on digital currencies, allowing countries like China to gain an advantage in emerging technology industries.
He stated, "The volatility and risky nature of cryptocurrency products, along with the lack of investor protection, could have devastating consequences for the financial lives of Americans."
Trump’s cryptocurrency investments have become a focal point for attacks, with Democrats questioning conflicts of interest.
Democratic lawmakers are directly targeting President Trump’s cryptocurrency investment activities, accusing these bills of making Congress "an accomplice to Trump’s unprecedented cryptocurrency scam." Reports indicate that Trump has added approximately $1.2 billion in value to his cryptocurrency portfolio within a few months through various digital asset investment programs, including the World Liberty Financial company, which is related to his family.
Waters emphasized, "Ironically, those Republicans who oppose government-supported digital dollars in the name of 'freedom' are now eager to hand over the keys to the financial future of Americans to Trump’s illegal and corrupt cryptocurrency empire." She criticized Republican lawmakers for "failing to confront the crypto lobbyists and, more disturbingly, for being too cowardly to confront the President."
This accusation reflects Waters' earlier actions. In May, she proposed (blocking Trump from participating in cryptocurrency legislation), attempting to prohibit the President from engaging in cryptocurrency activities. Democratic lawmakers believe that when Congress members could be influenced by Trump politically, there are conflicts of interest in deliberating legislation regulating stablecoins.
Further Reading
Is the President unable to watch the money-making scheme? U.S. lawmakers will propose new legislation to prohibit Trump from profiting through cryptocurrency speculation.
Is the SEC biased towards Republicans? Democrats angrily criticize: dereliction of duty, unprofessional, hindering transparency in cryptocurrency regulation.
CLARITY Act hearing: Trump criticized for profiting $2.9 billion from cryptocurrency; is he a stain on the industry?
The probability of the three major bills passing varies, and political maneuvering is intense.
Among the three controversial bills currently, the (GENIUS Act) has passed in the Senate and only requires a vote in the House to be sent to the President for signing. White House cryptocurrency advisor Bo Hines stated on platform X that the bill is expected to pass in the House without amendment and will clear the way for the President's signature.
Source: X White House cryptocurrency advisor Bo Hines expects the (GENIUS Act) to pass in the House without amendments, clearing the way for the President's signature.
The (CLARITY Act) clarifies the roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in regulating digital assets. The bill proposes to grant the CFTC more authority to register and oversee digital assets.
House Financial Services Committee Chairman French Hill emphasized that the CFTC should become the primary regulatory body for the digital asset industry.
However, the strong opposition from Democrats adds uncertainty to the passage of these bills. During the (CLARITY Act) marking stage, House Democrats proposed nearly 30 amendments to "mitigate the harms of the bill." Although Republicans hold a slim majority in the House, it remains unclear whether all three cryptocurrency bills can garner sufficient support to pass in a full House vote amid opposition led by Democrats like Waters and Lynch.
The legislative process shifts to the Senate in September as a key moment.
As political maneuvering intensifies in the House, the focus of the cryptocurrency market structure bill seems to be shifting towards the Senate. In June, Senate Banking Committee Chairman Tim Scott, Hines, and Wyoming Senator Cynthia Lummis stated that the Senate is committed to drafting, proposing, and passing the relevant bill before September 30.
Yu Zhe'an also shared on his personal Facebook that although the (GENIUS Act) has passed in the Senate, the political resistance it faces in the House may cause it to "die in the womb." In addition to the political backlash risks from the current administration, the expansion actions of dollar stablecoin operators across various business sectors have also raised dissatisfaction among other participants in the dollar system, and these resistances may be reflected through opposing votes from Congress members.
Source: Facebook Yu Zhe'an stated that although the (GENIUS Act) has passed in the Senate, the political resistance it faces in the House may cause it to "die in the womb."
The Rules Committee will discuss on July 14 whether to advance the (GENIUS Act) to a full House vote. If the Rules Committee resolution passes, a full House vote could occur as soon as July 15. Under current rules, the bill only needs a simple majority to pass, but the Democrats' "Anti-Crypto Corruption Week" actions add uncertainty to its passage.
Further Reading
The House of Representatives' "Cryptocurrency Week" kicks off on July 14! What are the three major cryptocurrency bills? Will they pass?
'Democrats launch Anti-Crypto Corruption Week! Confronting Congressional Crypto Week, will the stablecoin bill face uncertainties?' This article was first published in 'Crypto City.'