Rep. Maxine Waters Warns Crypto Bills Could Spark Fraud, Criticizes Trump’s Crypto Ties Ahead of “Crypto Week” in Congress
By Timmy Shen | July 15, 2025
As the U.S. House of Representatives prepares for a pivotal legislative push dubbed “Crypto Week,” Democratic Representative Maxine Waters has once again raised alarms about two major cryptocurrency bills—the GENIUS Act and the CLARITY Act—warning that they could open the floodgates to widespread fraud and financial harm for countless American families.
Crypto Legislation Set for House Consideration
This week marks a potential turning point for crypto regulation in Washington, D.C. Lawmakers and industry advocates are gearing up for intense debate and voting on the GENIUS and CLARITY Acts, pieces of legislation designed to overhaul the regulatory landscape for cryptocurrencies and stablecoins in the United States.
According to sources familiar with House proceedings, the CLARITY Act is expected to be brought to the floor for a vote as early as Wednesday, with the GENIUS stablecoin bill following on Thursday. If successful, the GENIUS Act could ultimately reach former President Donald Trump’s desk for signing by the end of the week.
Waters Voices Strong Opposition Over Fraud Risks and Trump’s Influence
In an opinion piece published Monday by MSNBC, Rep. Waters expressed deep concern about advancing these bills, stating that they risk “massive fraud and financial ruin for millions of American families.” Waters accused the bills of containing a “special, intentional wrinkle” that would effectively legitimize and legalize crypto-related corruption linked to Trump.
“The proposed legislation would open the floodgates to unprecedented crypto corruption by the president of the United States,” Waters warned, referencing estimates from Bloomberg which place Trump and his family’s involvement in cryptocurrency ventures at roughly $620 million of their net worth.
Criticism of Regulatory Protections in the Draft Bills
Beyond concerns about corruption, Waters criticized both bills for insufficiently safeguarding consumers:
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CLARITY Act: She argued that it “handcuffs the Securities and Exchange Commission (SEC), preventing it from proactively protecting people against fraud.” Instead of empowering regulators, the bill purportedly curtails their ability to act decisively.
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GENIUS Act: Although supporters say this legislation will establish stricter stablecoin regulations — such as requirements that stablecoins be fully backed by U.S. dollars or equivalent liquid assets — Waters pointed out the absence of allocated funds for effective regulatory enforcement. “The consumer protections it provides are weak,” she said.
What the Bills Propose
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GENIUS Act: Already cleared by the Senate, this bill focuses on comprehensive stablecoin oversight, stipulating that all stablecoins must be fully collateralized to protect holders from potential losses. It aims to bring greater transparency and asset backing to the rapidly growing stablecoin market.
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CLARITY Act: This legislation seeks to clarify regulatory responsibilities between the SEC and the Commodity Futures Trading Commission (CFTC). It would require crypto firms to disclose financial information to retail investors and maintain a clear separation between corporate and customer assets, ostensibly to strengthen investor protections.
Context and Industry Impact
“Crypto Week” is anticipated by some to be a landmark moment in U.S. crypto policy, possibly ushering in a more mainstream acceptance and regulatory framework for digital assets. However, Waters’ criticism reflects a faction of lawmakers highly skeptical of the industry’s risks and potential for abuse, especially given high-profile concerns over conflicts of interest linked to Trump.
The debate also follows recent procedural hiccups, as votes on crypto bills were postponed last week due to failed procedural motions in the House. With the spotlight intensifying, crypto stakeholders across the spectrum will be closely watching for outcomes this week.
About The Block
The Block is an independent media outlet delivering news, research, and data focused on the cryptocurrency and blockchain space. While Foresight Ventures, an investor with ties to the crypto exchange Bitget, holds a majority stake in The Block, the outlet operates independently to provide objective and timely coverage.
Contact the author:
Timmy Shen
Email: [email protected]
X/Telegram: @timmyhmshen
Disclaimer: This article is for informational purposes only and does not constitute legal, tax, investment, or financial advice.