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Senior Democratic member of the U.S. House of Representatives, Maxine Waters, expressed concerns over the GENIUS and Clarity bills, set to be voted on during “Crypto Week”. In her article published on MSNBC, Waters argued that the regulations included deliberate details intending to legitimize crypto investments during President Donald Trump’s administration. The bills are expected to pass through the House on Wednesday and Thursday, reaching the Oval Office by Friday. Waters contends that these regulations would effectively restrain the Securities and Exchange Commission (SEC), preventing it from protecting consumers.
Colleagues’ Potential Oversight in Crypto Legislation
In her piece titled “My Colleagues are Making a Big Mistake”, Waters emphasized that the crypto legislation could trigger a full-scale financial collapse. Highlighting Bloomberg’s calculations of the Trump family earning $620 million from crypto ventures, Waters noted her concerns about the President’s “unprecedented conflict of interest”. She asserts that the bills would weaken transparency, creating a diluted legitimacy within the crypto market.
Furthermore, Waters sought to convince voters that the bills transitioned from protective shields to masked threats. The GENIUS and Clarity bills, she argued, would leave regulatory bodies under-resourced, limiting SEC’s proactive measures and enabling malicious actors due to weak enforcement.
Waters Targets GENIUS and CLARITY Laws
The GENIUS Act, which passed the Senate, imposes net capital and reporting requirements on stablecoins fully backed by the U.S. dollar or equivalent liquid assets. However, Waters claims that the law lacks sufficient budget allocation for oversight and enforcement, rendering protective measures merely theoretical.
Similarly, the Clarity Act seeks to clarify jurisdictional boundaries between the SEC and the Commodity Futures Trading Commission (CFTC) in the crypto market, imposing conditions on companies to separate customer assets from corporate balance sheets. Waters pointed out that this regulation does not provide the SEC with the authority for early intervention, nor does it include provisions prioritizing individual investors.
Democrats argue that both bills serve as tools of legitimization due to Trump’s favorable stance towards the industry. Therefore, they continue to caution their party colleagues ahead of the final vote.
