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On June 6 at 9 a.m. in room 2220 of the Rayburn House Office Building, Democrats on the House Financial Services Committee held a Minority Day Hearing to explore former President Donald Trump’s alleged crypto crimes and the implications of the Republican-led Financial Innovation and Technology for the 21st Century Act (commonly known as the “market structure bill”). Despite the Minority Day designation, members of the Republican majority unexpectedly appeared at the session, adding a tense dynamic to the already high-stakes discussion.
The hearing, chaired by Ranking Member Maxine Waters (D-CA), aimed to provide a public forum for discussing the potential harm posed by Trump’s involvement in cryptocurrency-related schemes and the Republican bill’s impact on the digital asset sector. In her opening statement, Waters warned that “Trump’s crypto dealings have not just endangered the stability of financial markets, but they have also jeopardized the security of everyday Americans’ investments.” She emphasized the need for robust oversight and accountability to prevent further damage to the financial system.
Testimony was delivered by a panel of respected experts: Amanda Fischer, Policy Director and COO of Better Markets; Bart Naylor, Financial Policy Advocate/Economist at Public Citizen; Carole House, Senior Fellow at the Atlantic Council’s GeoEconomics Center; Hillary Allen, Professor of Law at American University Washington College of Law; and the Honorable Timothy Massad, Research Fellow and Director of the Digital Assets Policy Project at Harvard Kennedy School and former Chairman of the Commodity Futures Trading Commission.
Each witness delivered sobering assessments of both the crypto activities allegedly linked to Trump and the Republican-backed market structure bill. Amanda Fischer, for instance, described the Republican bill as “a wolf in sheep’s clothing” that would weaken key investor protections and expose consumers to heightened risks in the volatile world of digital assets. Fischer argued that the bill would create “a regulatory race to the bottom,” leaving the door wide open for fraud and manipulation.
Bart Naylor echoed those concerns, telling the committee that the legislation “prioritizes industry profits over public protection.” He criticized the bill’s provision to shift regulatory authority away from the SEC and CFTC, calling it a “power grab by crypto lobbyists that leaves consumers defenseless.”
Carole House provided insight into the national security implications of Trump’s crypto-related activities, explaining how illicit crypto transactions can fuel money laundering and terrorism financing. “We must not allow digital assets to become a safe haven for criminals and corrupt political actors,” she said.
Hillary Allen focused on the legal vulnerabilities created by the Republican bill, arguing that it would “erode the integrity of our financial system by stripping regulators of critical enforcement tools.” She warned that the bill’s broad exemptions could undermine the SEC’s efforts to police fraud and market manipulation.
The Honorable Timothy Massad concluded the witness presentations by drawing on his experience at the CFTC. He told the committee that “the Republican bill would handcuff regulators at a time when clear-eyed, robust oversight is needed more than ever.” Massad urged lawmakers to maintain and strengthen the existing framework for crypto oversight, not dismantle it.
Unexpectedly, the hearing’s Minority Day designation did not deter Republican members from attending and speaking up. Committee Chair Patrick McHenry (R-NC) and other Republican lawmakers used their time to defend the bill and downplay concerns about Trump’s alleged crypto crimes. McHenry argued that the market structure bill was necessary to “unleash American innovation” and position the U.S. as a leader in digital assets.
This sharp clash highlighted the deep divide between the two parties. Democrats, led by Waters, insisted that Trump’s crypto schemes were a stark example of why strong consumer protections and regulatory oversight are essential. Republicans, meanwhile, framed the hearing as a partisan attempt to derail efforts to foster innovation and competitiveness in digital finance.
In her closing remarks, Congresswoman Waters reaffirmed that the Committee’s Democratic members would continue to push for accountability and responsible policymaking. “This fight is not about party lines,” she said, “but about protecting American consumers and our financial system from reckless policies and corrupt schemes.”
The hearing ended after several hours of spirited debate, leaving no doubt that the battle over crypto regulation—and Trump’s alleged crypto misconduct—will remain front and center as Congress wrestles with the future of digital finance.
Continued discovery and exploration will be required, moving forward on this issue. A deeper understanding of the ways and means of crypto finance need be summarized into smaller bits of explanations, so that the public is able to make informed decisions when it comes to investment in crypto, but just as important, the public needs to know how to act as informed watchdogs of the president and those that are using and perhaps abusing these financial tools and assets.
Video:
Congresswoman Waters introduces the Complexity Bill during Minority Day on the Hill, after Rep. Hill shows up to derail the committee’s purpose.
