In 2022, Maxine Waters Wanted To Subpoena Sam Bankman Fried—Now She Thinks Crypto Is 'Inevitable'

U.S. Congresswoman Maxine Waters (D-Calif.), Chairwoman of the House Financial Services Committee, has been one of the most vocal critics of the crypto industry over the past few years.

In 2022, Waters was actively pushing for a subpoena for FTX founder Sam Bankman-Fried (SBF) to testify before Congress, underscoring her call for increased regulation in the rapidly expanding digital assets sector.

However, recent developments indicate a notable shift in her stance, as Waters now acknowledges the inevitability of cryptocurrency.

From Subpoena To Arrest: The SBF Saga

Back in 2022, Waters was determined to bring SBF before Congress to answer for the collapse of his crypto exchange, FTX.

Her plans took an unexpected turn when Bankman-Fried was arrested in the Bahamas at the request of the U.S. Attorney for the Southern District of New York.

Waters expressed her surprise over the timing, stating, "The public has been waiting eagerly to get these answers under oath before Congress, and the timing of this arrest denies the public this opportunity.”

SBF was slated to appear before the House Financial Services Committee the day after his arrest and had accepted an invitation to testify before the Senate Banking Committee.

His arrest preempted these hearings, with Waters noting, "We received confirmation this afternoon from Mr. Bankman-Fried and his lawyers that he was still planning to appear before the Committee tomorrow, but then he was arrested."

Now, SBF faces a myriad of charges, including wire fraud, securities fraud and money laundering, marking a significant development in the ongoing scrutiny of crypto markets.

Clamping Down On Crypto: Waters Vs. Meta

Waters’ concerns about cryptocurrency extend beyond individual actors like SBF. In 2019, when Meta (formerly Facebook) announced its Libra cryptocurrency project, Waters quickly called for a "moratorium" on its development.

She was outspoken in her belief that allowing Meta to “compete with the dollar” posed a risk to consumer protection, stating, “We've got to protect our consumers. We just can't allow them to go to Switzerland with all of its associates and begin to compete with the dollar.”

Fast forward to 2024, Waters remains cautious about Meta's ongoing crypto ambitions.

In January, she penned a letter to Meta's CEO, Mark Zuckerberg, raising concerns over the company's five pending crypto-related trademark applications.

This was in direct contrast to Meta’s previous assurance in October 2023 that it had no active digital asset projects.

Waters' letter demanded answers about Meta's intentions, questioning whether the company was planning to launch a payments platform supporting cryptocurrencies.

Her vigilance underscores her persistent apprehension regarding large tech companies’ involvement in the crypto space.

Championing Stablecoin Regulation

Waters has been especially vocal on the issue of stablecoin regulation.

Earlier this year, she stated that a deal on a stablecoin bill was “very, very close,” emphasizing the importance of granting the Federal Reserve oversight powers.

“That's what's important to me: Our central bank should have the power of oversight and should have the ability to be at the head of this," she said, following extensive discussions with House Financial Services Committee Chair Patrick McHenry.

Also Read: Bitcoin, Gold Are The ‘Debasement Trade’ In Uncertain Times: JPMorgan

Treasury Secretary Janet Yellen echoed Waters’ concerns, calling for legislative action to protect crypto users and establish clear guidelines for stablecoin issuers.

Waters' push for a regulatory framework reflects her commitment to safeguarding the financial system and investors from potential risks associated with the burgeoning digital asset market.

Waters' Changing Tone: Crypto's ‘Inevitability’

In a recent interview with Punchbowl News, Waters surprised many by acknowledging a shift in her perspective on the crypto industry. “Crypto is inevitable. There are countries that are way ahead of us,” she said, signaling an openness to dialogue that contrasts sharply with her earlier calls for stricter regulation.

Despite her evolving stance, Waters remains focused on investor protection.

“The crypto companies want support the way they want to have it. We can’t do that. There’s got to be guardrails so that we protect consumers,” she said.

Her comments reflect a nuanced approach to crypto regulation, advocating for safeguards while recognizing the global momentum in digital currencies.

If the Democrats regain control of the House in November, Waters is positioned to reclaim her role as Chair of the Financial Services Committee.

While she has consistently opposed the crypto industry’s legislative priorities, her recent remarks suggest a potential shift in strategy.

Acknowledging that the U.S. might be “behind” in the global race for digital currencies, Waters appears more willing to engage in discussions on crypto’s future in the financial landscape.

This shifting political environment will be a key topic at Benzinga’s Future of Digital Assets event on November 19, where industry experts and policymakers will discuss the evolving relationship between crypto and traditional finance.

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Some elements of this story were previously reported by Benzinga and it has been updated.

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