Republican lawmakers on the House Financial Services Committee (HFSC) pushed back against concerns that US President Donald Trump could personally profit from his exposure to the crypto industry, dismissing the claims as political โtheatricsโ amid ongoing debate about digital assets legislation.
In a June 6 hearing organized by Democrats, HFSC ranking member Maxine Waters defended that the lawmakers should focus on โinformation that has not been explored during the committee hearingโ on June 4, which dealt with concerns around the Digital Asset Market Clarity (CLARITY) Act. The debate around the crypto market structure bill, expected to head for a vote on June 10, has been partly shadowed by calls for provisions to stop Trump from potentially using the legislation to his personal benefit.
Representative Bryan Steil, who chairs the digital assets committee, seemed to dismiss criticisms as โTrump derangement syndrome,โ a term used to dismiss criticism surrounding the president. Cointelegraph reached out to a Steil spokesperson for comment but had not received a response at the time of publication.
โMy Republican colleagues refuse to even acknowledge President Trumpโs crypto corruption, which undermines their efforts to pass this bill,โ said Rep. Stephen Lynch following Steilโs remarks. โI assume out of fear and backlash from the president.โ
Itโs unclear whether the Democratsโ efforts will garner enough support among members of their party or Republicans to slow or halt passage of the CLARITY Act. Before Trumpโs dinner to reward his memecoin holders on May 22, Waters introduced a separate bill to block the president, vice president, members of Congress and their families from engaging with digital assets.
According to Waters at the June 6 hearing, Trump is โabusing his position as president to enrich himself off crypto.โ She continued:
โNot a single provision within this bill [CLARITY Act] addresses the crimes Iโve laid out. In fact, this bill only legitimizes it.โ
Also speaking at the hearing, Rep. Warren Davidson promised โ100% Democrat opposition to progress in this bill.โย
Related: WLFI sends cease-and-desist letter over โunauthorizedโ Trump wallet โ Report
Market structure bill to address SEC, CFTC roles
Amanda Fischer, the policy director and chief operating officer for Better Markets and a witness at the hearing, addressed other concerns with the presidentโs indirect handling of digital assets through the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC). Several of the commissioners in both agencies are expected to resign or depart without nominees yet on the path to replace them.
โThe financial regulatory agencies are under siege,โ said Fischer. โDemocratic commissioners nominated by the president and confirmed by the Senate have been fired without cause. Soon, the CFTC will have only one commissioner. By the end of the year, this SEC will be down to a three-member commission of all Republicans, notwithstanding that they have a statutory mandate of bipartisanship.โ
The Senate Agriculture Committee is scheduled to consider Trumpโs nomination of Brian Quintenz to chair the CFTC on June 10. Acting CFTC Chair Caroline Pham and Commissioner Kristin Johnson have both announced plans to depart the agency, potentially leaving Quintenz as the sole commissioner for a time.
The SEC, under the chairmanship of Paul Atkins, could also see a shakeup in leadership by 2027 with the expected departure of Commissioner Caroline Crenshaw. Commissioner Hester Peirce, who heads the agencyโs crypto task force, is serving a term that expired on June 5. Both commissioners could serve up to 18 months after their terms end if not replaced by a Senate-confirmed pick from Trump.
Magazine: Trumpโs crypto ventures raise conflict of interest, insider trading questions
