California Congresswoman Maxine Waters, the senior member of the US House Financial Services Committee, utilized her inaugural remarks at a markup hearing to denounce President Donald Trump’s financial and ethical ties to the cryptocurrency sector, including the introduction of a stablecoin by a family-supported enterprise.
While addressing legislators at an April 2 session, Waters stated that Trump had exploited his role as president to capitalize on “numerous crypto projects” for personal gain, including a US dollar-pegged stablecoin initiated by World Liberty Financial (WLFI) — the company supported by his family.
The California representative highlighted Trump’s memecoin that debuted in January, his ambitions to create a national cryptocurrency reserve, and “his own stablecoin,” referring to WLFI’s USD1 token launched in March.
Rep. Maxine Waters speaking to the House Financial Services Committee on April 2. Source: GOP Financial Services
“Through this stablecoin legislation, this committee is establishing a dangerous and unacceptable precedent, sanctioning the president and his associates’ attempts to devise regulations that will benefit themselves at the cost of everyone else,” asserted Waters, adding:
“Trump is likely eager for the entire government to adopt stablecoins for transactions ranging from those conducted by the Department of Housing and Urban Development, to Social Security disbursements, to tax payments. And which coin do you believe Trump would want to substitute for the dollar? Naturally, his own.”
Waters does not stand alone in her critique of Trump’s cryptocurrency activities, as numerous lawmakers and specialists from various political backgrounds suggest there could be conflicts of interest.
Committee Chair French Hill, who addressed stablecoins prior to Waters, also reportedly remarked that the Trump family’s engagement in the sector complicates legislation.
“If there is no movement to prevent the President of the United States from possessing his stablecoin business […] I will never be able to agree to support this bill, and I would urge other members to refrain from enabling,” emphasized Waters.
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Representative Bryan Steil, who put forth the Stablecoin Transparency and Accountability for a Better Ledger Economy, or STABLE Act, did not directly respond to Waters’ apprehensions regarding Trump’s stablecoin but alluded to creating protections for consumers.
Hill did not reference Trump during his opening remarks but mentioned the necessity for a “clear federal framework” concerning payment stablecoins.
Crypto legislation progressing through Congress
The committee will review amendments to the STABLE Act, alongside bills aimed at tackling illicit finance utilizing emerging financial technologies and preventing the US government from issuing a central bank digital currency, or CBDC.
The markup hearing was an essential move before the committee could vote on the progression of the bills to the House of Representatives.
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