Former U.S. President Donald Trump’s growing involvement in the cryptocurrency sector is raising eyebrows in Washington, just as House Republicans introduce a new legislative framework for digital assets. On May 5, GOP lawmakers presented a draft bill aimed at creating clearer regulations for the crypto market—while Democrats began rallying a response, concerned over Trump’s deepening links to the industry.
A Democratic aide familiar with the issue said that Rep. Maxine Waters, the top Democrat on the House Financial Services Committee, was preparing to lead a walkout during a May 6 hearing on digital assets. The session, chaired by Republican Rep. French Hill and titled “American Innovation and the Future of Digital Assets,” could discuss the proposed regulatory framework.
In a joint announcement on May 5, Hill and three other senior Republicans outlined their draft legislation, which aims to define how U.S. regulators—namely the SEC and CFTC—should oversee digital assets. The bill features language reminiscent of Trump’s pro-crypto rhetoric, including the goal of establishing the U.S. as a global hub for the industry.
Among the bill’s provisions is a requirement for the SEC and CFTC to collaborate on a shared definition of digital commodities. It also specifies that certain crypto transactions would not be treated as investment contracts, provided buyers don’t acquire ownership rights or claims on profits or assets.
According to the Democratic aide, all committee members were expected to consent before the hearing could proceed, suggesting Waters might attempt to halt the GOP-led discussion and organize an alternative hearing to spotlight Trump’s and his family’s crypto dealings. A number of Democrats in the Senate are also reportedly considering similar actions in relation to a separate stablecoin bill.
Ethical Concerns and Political Tensions Rise
Some lawmakers have gone as far as demanding Trump’s impeachment following reports that key holders of his memecoin were offered exclusive White House tours and private dinners. In addition to the meme-based token, the Trump family is linked to World Liberty Financial—a company that recently introduced its own stablecoin. Notably, a $2 billion investment in Binance was settled using the USD1 token issued by a firm based in Abu Dhabi.
Waters, through the staffer, reportedly urged Republicans to revise the bill to include strict conflict-of-interest protections, ensuring Trump cannot personally profit from crypto-related legislation.
Rep. Hill previously acknowledged that the Trump family’s involvement has added complexity to the regulatory process. Although Republicans currently control both chambers of Congress and the White House, some Trump allies have criticized the president’s crypto-themed dinner, hinting that it may amount to pay-to-play politics. It remains uncertain which memecoin holders will be invited to the event scheduled for May 22.
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