As U.S. lawmakers gear up to vote on two major crypto bills, the CLARITY and GENIUS Acts, Rep. Maxine Waters has raised a red flag, calling the proposals dangerous giveaways to Wall Street, Big Tech, and even the Trump family.
Writing in MSNBC, Waters warned that the new legislation could strip the SEC of its enforcement powers, threaten investor safety, and allow bad actors to thrive under minimal oversight.
In an X post shared by Jungle Inc, analyst highlighted Rep. Maxine Waters’ sharp criticism of the pro-crypto CLARITY and GENIUS Acts, warning they could lead to massive fraud, financial ruin, and even presidential corruption. Waters compared the bills to the repeal of Glass-Steagall, accusing them of enabling Trump’s alleged $1.2 billion crypto scheme.
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SEC Power Gutted, Fraud Gate Open?
Waters’ central concern is that the bills would strip enforcement power from the Securities and Exchange Commission, forcing regulators to act only after damage is done.
“If they pass, we’ll face the first crypto financial crisis in U.S. history,” she warned.
She also slammed the GENIUS Act for weakening oversight on stablecoins and allowing DeFi platforms to operate outside of financial regulations, potentially inviting national security threats and untraceable foreign influence.
Adding to the alarm, both bills appear to give decentralized finance (DeFi) projects a free pass from most compliance responsibilities, something Waters believes could open the U.S. market to untraceable foreign-controlled crypto firms.
Trump’s Crypto Ties Stir Corruption Concerns
The debate over these bills comes amid growing scrutiny of Donald Trump’s involvement in the crypto space. From promoting memecoins and NFTs to co-founding ventures like World Liberty Financial, the Trump family’s deepening ties to digital assets have sparked accusations of self-dealing. Plans for a utility token for Truth Social and a recent ETF filing have only intensified these concerns.
House Democrats even staged a walkout during a recent digital assets hearing, accusing Trump of “crypto corruption” and warning that his personal interests could influence legislative outcomes. Senator Elizabeth Warren labeled Trump’s crypto-themed events as an “orgy of corruption,” demanding more transparency.
Congress at a Crossroads, Global Eyes Watching
This debate isn’t just a domestic one. As Sean Lee of the International Digital Asset Exchange Association pointed out, America’s approach will set a global precedent. Lee believes clear regulation is needed but cautioned against swinging too far in favor of deregulation without robust checks.
The week ahead in Congress is being closely watched by both markets and global regulators. Analysts suggest that if the bills pass as-is, they could legitimize industry shortcuts, embolden politically connected crypto ventures, and further entrench the influence of Wall Street and Big Tech over digital assets.
The CLARITY and GENIUS Acts are proposed U.S. crypto bills aimed at creating a regulatory framework for digital assets. They seek to define how cryptocurrencies and DeFi platforms are regulated, potentially reducing the Securities and Exchange Commission’s (SEC) authority.
Rep. Maxine Waters believes the bills are dangerous, claiming they favor Wall Street, Big Tech, and individuals like Donald Trump by removing key protections and SEC oversight, potentially enabling fraud and financial instability.
Global regulators are closely watching the U.S. outcome. Experts warn that passing these bills without proper checks could weaken international confidence and set a precedent for poor oversight.
