David Edwards
Democratic lawmakers, led by Rep. Maxine Waters, staged a dramatic walkout from a joint congressional hearing on digital assets, citing what they described as “the corruption of the President of the United States” related to cryptocurrency. Waters, the ranking member of the House Financial Services Committee (HFSC), objected to the proceedings on grounds that former President Donald Trump’s financial entanglements in the crypto space compromised the integrity of the discussion.
During the May 6 session, Waters remained standing and called for the suspension of the hearing, citing Trump’s direct involvement with digital assets—including his ownership of crypto holdings, controversial fundraising via a memecoin initiative, and ties to global investment dealings—as grounds for concern. She further criticized Republican leadership for proceeding despite these ethical concerns, accusing them of exploiting procedural loopholes to downgrade the hearing to a “roundtable.”
HFSC Chair French Hill dismissed the objections as partisan theatrics, reiterating his party’s commitment to building a “lasting framework” for digital asset regulation. He accused Waters of politicizing the regulatory discourse at a critical moment for financial innovation in the U.S.
Waters’ protest followed a May 5 announcement outlining a broader strategy to resist what Democrats are labeling as “Trump’s crypto corruption.” The accusations reference a series of events including Trump’s launch of a memecoin campaign, the offering of exclusive access to top tokenholders, his family’s involvement in World Liberty Financial, and a $2 billion investment facilitated through the platform’s USD1 stablecoin by an Abu Dhabi-based firm.
Despite Democratic objections, Republican members continued with the discussion, emphasizing the urgency of regulatory clarity amid rapid crypto market evolution. Still, Waters warned of the reputational and institutional damage resulting from proceeding under what she termed “unprecedented ethical conflict.”
“The GOP continues to push market structure legislation amid deep conflicts of interest,” she asserted. “In doing so, they compromise Congress and weaken the democratic fabric of this nation.”
