Congresswoman Maxine Waters warns that crypto bills could undermine consumer protections

Congresswoman Maxine Waters (D-Calif.) has recently warned that two cryptocurrency bills set to be considered by the House, #CLARITYAct and the GENIUS Act, could pose significant risks to consumers and undermine the power of regulatory agencies.

Concerns about consumer protection and political influence

Waters argued on MSNBC that these bills prioritize industry interests over investor safety, which could "open the door to fraud and major financial collapse." She is concerned that the CLARITY Act would limit the SEC's ability to protect investors, forcing the agency to wait until harm occurs before taking action.

Regarding #GENIUSAct , she criticized the stablecoin provisions as weak and lacking oversight for third-party providers, making users vulnerable to fraud and discrimination. Waters also expressed concerns about national security, particularly regarding the exemption from oversight for the decentralized finance (DeFi) sector and the ability of foreign-controlled crypto companies to easily access the U.S. market.

She argued that these bills are a "gift" to Wall Street and Big Tech, contradicting the claim that crypto democratizes finance. The decision of the U.S. Congress this week will not only shape the domestic market but also influence global standards for digital asset regulation.