The United States Representative Maxine Waters (D-CA), ranked member of the House Financial Services Committee, introduced the legislation on May 22 to prohibit the president and other legislators from conducting certain digital asset activities and dealing with growing concerns among the Democrats about President Donald Trump’s commitment to digital assetsAnd especially his memecoin.
Rope. Waters, along with 14 other democratic fellow sponsors, introduced ””Stopping, Rmention and Obside Market Plays in Crypto Act 2025“(Stop Trump in the Crypto Act from 2025) to end” Crypto Corruption. “
Specifically, the bill requires a ban on the president, the vice president, congressional members or their families who “own part of a digital asset that would enable them to unilaterally make changes to digital asset” and look to prevent officials from owning, issuing, promoting or receiving compensation.
The bill was announced – uncertainty – just hours before President Trump held a gala for the best holders of his $ Trump Memecoin On May 22.
“Trump’s Krypto Con is not just a fraud to target investors,” rope. Waters mentioned. “It is also a dangerous back door to sell influence over American politics to the highest foreign bidder. For everything we know, Russia, China or even North Korea can buy Trump’s crypto to secure benefit from the White House.”
Trump’s crypto band and influence
Trump has made to increase US digital asset space One of his highest priorities since he took office for the second time in January.
Like often proclamations in support of the industry – for example explanatory That he wanted to “make America the world’s crypto capital” trump has moved quickly to reshape the regulatory landscape in the United States into a more crypto favorable form, including turning so-called crypto -debankingThe Install crypto advocates in important regulatory roles and signs an executive order to make a Strategic Bitcoin Reserve.
One of the strong examples of this Trump 2.0-era embrace of digital assets is seen in the changing face of Securities and Exchange Commission (SEC).
Under its former chairman, Gary GenserThe agency was the course for the more regulatory lead in the digital asset industry and continued a strategy for aggressive enforcement measures against those who did not follow the securities law-in-law whether they believed they were exempted or not.
Gensler retired from the role in January, just as Trump was responded to the office, and a crypt -friendly interim chair was installed in the form of Mark Uyeda. During Uyeda, and with the support of Sec Commissioner Hester “Crypto Mom” Peirce, the agency has lost moods and investigations faster than it submitted them during the reign of Gensler.
In March this year, after only three months of Trump’s chairmanship and Uyeda’s SEC chairman, the controller had already lost the investigations in Crypto.comThe Yuga LabsThe Web3 game platform UnchangingThe Undermineand Robine (Nasdaq: Hood); fixed its long -standing cases against Ripple Labs; dropped their moods against Coin base (Nasdaq: Coins); reached in principle agreement to reject separate moods against The collar and Consensus; and moved jointly to stop Its ongoing legal struggle with Justin Sun and the Found Foundation.
However, it is not Trump’s influence on the approach to US regulatory authorities that have caused the greatest relapse from democratic legislators. Instead, it is the president’s dabbing in the digital asset space that has proven too much to carry.
Specifically, three days before its January 20 inauguration, the Trump team launched $ TrumpA MEME token at Solana Blockchain, followed by the Trump-backed digital asset company World Liberty Financial (WLF) launching Its own Stablecoin In March.
Orchestrating a more crypt-friendly regulatory environment from the president’s office while serving on crypto projects that are launched in this recently favorable space seems to be an obvious conflict of interest that has not been unnoticed by critics and which has begun to inhibit legislative efforts.
Critical Democrat
On May 6, rope went. Waters out of a joint meeting between the house’s financial services and agricultural committees, focused on Cryptocurrency -policy, with reference to concerns about the Trump family’s digital asset company.
Waters said she opposed the procedure “because of the US president and his ownership of crypto and his monitoring of all agencies.”
This feeling was repeated by democratic colleagues, including rope. Angie Craig (D-MN), who said: “It is legitimate to call the self-action from the Trump administration related to Hawking Memecoins from the White House.”
On May 15, Senator Richard Blumenthal (D-CT), the best Democrat on the Senate’s permanent sub-committee for investigations, put his voice to the growing run of dissenses and made it official off announcement A resolution that condemned Trump’s pattern of corrupt self -implementation.
“Trump’s crypto corruption is so massive and brave, there is little doubt that he will continue to sell the American people until Republicans grow a backbone,” Blumenthal said. “Next week, while Trump is eating with the person who has spoken the most money in his pocket, I will require passing of this resolution as a test to see if Republicans are more than just lackeys to President Trump’s self -launching system.”
Now, The House Democrats have also introduced regulation to this effect, in the form of the ‘stop trump in crypto act of 2025,’ which was backed by reps. Nydia Velázquez (D-NY), Brad Sherman (D-CA), Ritchie Torres (D-Ny), Alexander ‘Al’ Green (D-TX), Stephen Lynch (D-Ma), and Rashida Tlaib (D-Mi), among others.
In support of the bill, rep. Green: “President Trump’s other presidency has brought corruption in this country to new heights … Nothing illustrates this more than President Trump’s Memecoin. This bill is absolutely important to ensure that future public employees and their families do not repeat President Trump’s unclear examples.”
Look: Break solutions on blockchain control barriers
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