Important Highlights
- Waters is voicing worries that the new cryptocurrency bills could eliminate crucial safeguards and ultimately work in the elites’ favor.
- The hands of SEC can be tied; The Defi firm could avoid the oversight.
- The world is watching how the U.S. handles crypto regulation.
Crypto Bills Under Fire: What’s Going On?
Crypto is at the center of a significant political battle in Washington this week. Rep.
Maxine Waters isn’t holding back she’s sounding the alarm on two new bills she says could do more harm than good for everyday people.
Clear guidelines for the expanding crypto business are intended to be provided by the two bills, the GENIUS Act and the CLARITY Act.
But Waters believes they’ll strip away protections, weaken regulators like the SEC, and mostly benefit the powerful and politically connected.
“I told you so,” Waters wrote in a Monday op-ed for MSNBC, warning that these bills could open the floodgates for scams and financial ruin.
And if lawmakers don’t pay attention, regular investors could be left picking up the pieces.
What’s the Problem with These Crypto Bills?
Let’s start with the CLARITY Act. On paper, it’s meant to make crypto regulation more straightforward.
According to Waters, however, it would essentially tie the SEC’s hands and make it impossible for the agency to prevent fraud before it occurs.
To put it another way, it might be too late by the time regulators take action.
Subsequently, the GENIUS Act addresses stablecoins, which are digital assets linked to conventional currencies such as the US dollar.
Again, the bill seems promising at first. But according to the water, it lacks basic security:
no real inspection for third-party vendors, very little money for enforcement, and no clear safety measures against fraud or discrimination.
Worse, it gives a free pass to decentralized finance (DEFI) platforms. These systems, which claim to run without central control, will be actually allowed to operate without any inspection.
So Who Wins If These Bills Pass?
According to Waters, it’s not regular investors it’s the crypto insiders and politically connected players who walk away winners.
In particular, she calls out ventures tied to Donald Trump, including World Liberty Financial, NFT collections, and upcoming crypto tokens linked to Truth Social.
If these bills pass, they could operate with fewer restrictions and more financial freedom without the accountability that comes with it.
It’s a shift away from consumer-first policy and a move toward helping big players consolidate power.
Crypto for the People? Not Quite.
The goal of cryptocurrency has always been to “democratize finance.”
But according to Waters, these bills have the opposite effect.
Instead of giving everyone the same chances, they could strengthen the power of megabanks, tech behemoths, and cryptocurrency whales.
Waters further warns that in the absence of stringent regulations, foreign-controlled cryptocurrency companies might find it easier to access U.S. markets, which would raise concerns for the economy and national security.
Why Everyone Is Observing
This isn’t just a domestic issue. The U.S. is a global leader in the crypto space, and how it regulates digital assets affects markets around the world.
Sean Lee, co-founder of the International Digital Asset Exchange Association, says that while regulation is essential, it has to evolve as the market grows. If the U.S. gets this wrong, other countries might follow suit—and not in a good way.
This Week Could Change Everything
The Congress is ready to vote on both bills. The result will shape the future of crypto regulation – not only the U.S.
In, rather globally. Meanwhile, MPs such as Waters and Sen Elizabeth Warren stressed strict rules, including ban on presidents and earning profits from businesses related to Crypto.
So yes, things are getting hot.
What Happens If We Get This Wrong?
According to Waters, the consequences are self-evident: investors are at a disadvantage, fraudulent individuals profit, and confidence in the financial system erodes.
The crypto economy continues expanding, but a lack of defined and sensible regulations could lead to greater instability, increased fraud, and reduced safeguards for ordinary citizens.