The two bills CLARITY and GENIUS in the U.S. are controversial as they are accused of weakening oversight of the cryptocurrency market, paving the way for financial fraud and vested interests.
The bills could strip power from the SEC, allowing DeFi platforms to operate unchecked and raising concerns about corruption as the Trump family becomes more involved in the cryptocurrency space.
MAIN CONTENT
The controversial bill poses risks of reducing SEC control, increasing fraud risks.
Concerns about corruption related to the Trump family's crypto dealings.
The U.S. Congress's decision could set a global precedent for cryptocurrency regulation.
How might the CLARITY and GENIUS Acts weaken the SEC's authority?
Analysts indicate that these bills could harm the SEC's law enforcement capabilities as they would only be permitted to intervene after an incident has occurred, leading to the risk of a financial crisis in the cryptocurrency sector for the first time in the United States.
Representative Maxine Waters emphasized: "If the bills pass, we will witness the first cryptocurrency crisis in U.S. history." The GENIUS Act has also been criticized for weakening stablecoin oversight and allowing DeFi platforms to operate outside the legal framework, posing risks to national security and uncontrollable foreign influence.
"Reducing the SEC's power will open the floodgates for fraudsters to thrive in the cryptocurrency market, threatening the economic stability of the nation."
Maxine Waters, Chairwoman of the House Financial Services Committee, 2025
What concerns does the connection between the Trump family and cryptocurrency raise?
According to investigations, the Trump family has prominent activities in cryptocurrency through projects like issuing utility tokens for the Truth Social platform, as well as involvement in various cryptocurrency and NFT projects. This raises concerns about conflicts of interest and the risk of policy manipulation for personal gain.
The U.S. House of Representatives previously took a strong stance against Trump, accusing him of using the cryptocurrency sector for political purposes and personal enrichment. Senator Elizabeth Warren also called this a "widespread corruption event" demanding greater transparency.
"Trump's intervention in the crypto market creates an unacceptable risk of political corruption."
Elizabeth Warren, U.S. Senator, 2025
What crossroads is the U.S. Congress facing and how does it affect global cryptocurrency regulation?
International expert Sean Lee stated that how the U.S. regulates laws will shape global standards for cryptocurrency management. Without a balanced legal framework between regulation and innovation, the international market might face risks from legal loopholes in the U.S.
Last week was viewed as a significant moment as U.S. lawmakers prepared to vote, with careful attention from investors and global regulators. A negative reaction if the bills are passed will heighten skepticism about the transparency and effectiveness of digital asset regulation.
Frequently Asked Questions
What are the CLARITY and GENIUS Acts? Two bills aimed at establishing a legal framework regulating the management of digital assets and DeFi platforms in the United States, which could diminish the SEC's authority. Why does Maxine Waters oppose these two bills? Because they could enable fraud, undermine investor protections, and be exploited by powerful groups such as Wall Street, Big Tech, and individuals connected to the Trump family. How does the U.S. Congress's decision affect global cryptocurrency regulation? U.S. rulings could set a precedent, impacting international market confidence and regulations in other countries.
Source: https://tintucbitcoin.com/maxine-waters-canh-bao-clarity-genius/
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