- U.S. crypto hearing canceled after Maxine Waters objects to Trump’s crypto ventures and token promotion
- $TRUMP token and WLFI cited as conflict of interest by Democrats blocking bipartisan regulation talks
- Crypto law timeline for 2025 now uncertain as partisan rift over Trump’s blockchain ties deepens
Efforts to advance major U.S. crypto legislation stalled last Tuesday after House Democrats blocked a key joint committee hearing, citing concerns directly linked to President Donald Trump’s involvement in cryptocurrency ventures.
What this shows is the sharp partisan divisions complicating the path toward clear crypto regulations in the United States.
Hearing Cancelled Over Conflict of Interest Claims
Citing Trump’s various cryptocurrency ventures, Democratic lawmaker Maxine Waters objected to a joint hearing scheduled for Tuesday, effectively canceling proceedings between the House Financial Services Committee and the House Agriculture Committee.
Her objection effectively cancelled the proceedings, which were intended to move forward the process of creating a new legal framework for digital assets in the U.S.
Related: Rep. Steil Wants Crypto Bills Passed “In Tandem”: Here’s the Strategy
Waters and other Democrats explicitly tied their resistance to President Trump’s various cryptocurrency activities. They argue that Trump’s personal and family ties to crypto projects create potential conflicts of interest.
Waters specifically accused Trump of abusing power and stated she could not agree to the hearing under these circumstances.
Spotlight on Trump’s Crypto Ventures
Some of the ventures cited include the meme coin project TRUMP, named after the President, and World Liberty Financial, a cryptocurrency company that the President owns.
Besides owning those projects, Trump is actively involved in promoting them. For instance, he had posted about a special dinner for top $TRUMP token holders scheduled for later this month and a “special VIP tour” for a select-few investors.
It is worth noting that government ethical experts and political opponents have cited potential conflicts of interest regarding Trump’s crypto involvement and moves to create substantive rules governing the sector. Some opposition lawmakers expressed concerns about the possibility of self-dealing, with Waters stating that she could not agree to such a hearing, accusing Trump of abusing power.
Outlook Dimmed for Crypto Legislation This Year?
The Democrats’ resistance could threaten the quick passing of crypto legislation in the US, as many analysts no longer see the possibility of having a substantive crypto law this year.
Related: US Congress Targets Crypto Bill by 2025: Pro-Crypto Senator Cynthia Lummis Drives Senate Agenda
However, within the crypto community, the prevailing sentiment appears to view this as a temporary setback rather than a complete halt. They believe the legislators will find a way around the situation and establish a crypto law in the US.
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