Rep. Waters claims crypto bills could 'open floodgates' to fraud, slams Trump's ties to industry ahead of Crypto Week

Democratic Rep. Maxine Waters has again criticized the GENIUS and Clarity crypto bills, saying they could "open the floodgates to massive fraud and financial ruin for millions of American families."

In a Monday opinion piece titled "My colleagues in Congress are making a mistake advancing these crypto bills" for MSNBC, Waters wrote that she had to sound the alarm again about the risks of pending crypto legislation.

This week, the House will consider two major crypto bills. Lawmakers and cryptocurrency advocates are preparing for what could be one of the most significant weeks for crypto legislation, potentially culminating in a stablecoin bill reaching President Donald Trump's desk by Friday. Sources said they expect the Clarity Act to pass on Wednesday, with the GENIUS stablecoin bill slated for Thursday. 

With the "Crypto Week" approaching, Waters said that both bills "have a special, intentional wrinkle." 

"They would legitimize and legalize the unprecedented crypto corruption by the president of the United States," Waters said in her op-ed.

Trump's involvement with crypto assets has been a central concern for Democrats regarding both bills. According to Bloomberg estimates, cryptocurrency ventures account for approximately $620 million of Trump and his family's wealth. 

Waters also argued that the bills fail to protect consumers. "The CLARITY Act handcuffs the Securities and Exchange Commission, preventing it from proactively protecting people against fraud," she said. 

"The GENIUS Act is no better," Waters continued. "Though its supporters say it will provide urgently needed protections for users of stablecoins, there's no funding provided to regulators to implement the law, and the consumer protections it provides are weak."

The GENIUS Act, which has already cleared the Senate, would establish comprehensive stablecoin regulations requiring full backing by U.S. dollars or equivalent liquid assets. 

Clarity, on the other hand, takes a broader regulatory approach to cryptocurrency markets by clarifying oversight responsibilities of the SEC and the Commodity Futures Trading Commission. Under this legislation, crypto firms would need to provide retail financial disclosures and maintain separation between corporate and customer assets.