- She asserts the bills will further entrench Wall Street and Big Tech power, marginalizing smaller innovators and retail users.
- Waters warns the bills could trigger America’s first crypto financial crisis without strong consumer and regulatory safeguards.
- PPI and Industrial Production drop Wednesday morning — see how Matt Maley is trading the reaction, live at 6 PM ET.
Representative Maxine Waters (D-CA) has issued a forceful rebuke of two proposed cryptocurrency bills, known as the CLARITY Act and the GENIUS Act: she warned their passage would "open the floodgates to massive fraud" and repeat the deregulatory mistakes that led to past financial crises.
What Happened: In an opinion piece published on Monday, Waters, who represents California's 43rd congressional district, argued that the crypto bills represent a direct threat to consumer safety, financial stability, and national security.
"What we're witnessing isn't just unethical," she wrote. "It's the largest fraud and abuse of power in modern history."
The House is expected to vote on the bills this week. Proponents argue the legislation will create a pro-innovation regulatory framework for digital assets.
But Waters dismissed those claims, contending the bills were "written by and for the crypto industry" and likening them to the Gramm-Leach-Bliley Act of 1999, which dismantled banking safeguards and was later blamed for exacerbating the 2008 financial crisis.
Waters sharply criticized how both bills would constrain regulators from acting preemptively against fraud.
"The CLARITY Act handcuffs the Securities and Exchange Commission," she warned, claiming it would leave investors exposed until after collapses like FTX have already taken place.
The GENIUS Act, she argued, offers "weak consumer protections" for stablecoin users and provides no meaningful funding for oversight.
She also warned that its provisions enable foreign-controlled crypto operations and fail to guard against national security risks.
Why It Matters: Waters linked the bills to President Donald Trump, claiming they "would legitimize and legalize the unprecedented crypto corruption by the president of the United States."
According to her statement, Trump has allegedly used his office to strike crypto deals abroad and personally benefited from "shady" ventures, adding $1.2 billion to his wealth through digital assets.
Democrats had proposed several amendments aimed at limiting presidential overreach and improving regulatory safeguards during committee discussions.
Waters said each one was rejected by Republicans.
"These bills will only strengthen Wall Street's dominance alongside Big Tech, while squeezing out smaller innovators," she wrote. "They give megabanks and Big Crypto the green light to consolidate control."
With the 15th anniversary of the Dodd-Frank Act approaching, Waters warned that lawmakers risk repeating history. "Passing the CLARITY and GENIUS Acts would prove that we learned nothing from that disaster," she said. "If these bills become law, America will eventually face its first crypto financial crisis."
Read Next:
Image: Shutterstock
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
