House Democrats push back on crypto legislation with ‘anti-corruption’ efforts

Congresswoman Maxine Waters (D-Calif.) and Congressman Stephen Lynch (D-Mass.), announced on Friday that next week will be known as “Anti-Crypto Corruption Week.”

During this time, they plan to rally Democrats to push back against Republican efforts to fast-track three pieces of legislation related to cryptocurrency — the “Clarity Act,” the “GENIUS Act” and a bill that would prohibit a central bank digital currency.

According to Waters and Lynch, the measures open the door to widespread crypto fraud and serve to legitimize what they describe as President Donald Trump‘s “crypto corruption.”

“Just days after passing one of the most egregious billionaire giveaways in American history and ripping basic needs away from American families, Republicans are at it again. They’re doubling down by fast-tracking a dangerous package of crypto legislation through Congress,” Waters said in a statement.

“Aside from lacking urgently needed consumer protections and national security guardrails, these bills would make Congress complicit in Trump’s unprecedented crypto scam — one that has personally enriched himself, his entire family, and the billionaire insiders in his cabinet, all while defrauding investors.”

Lynch expressed concerns that the House‘s Clarity Act and the Senate’s GENIUS Act will “not only further President Trump’s corruption,” but “expose our financial stability, national security, and consumer protections” to greater risk.

“My Republican colleagues are eager to continue doing the bidding for the crypto industry while conveniently ignoring the vulnerabilities and opportunities for abuse that exist in crypto — especially given President Trump’s acceptance of billions of dollars in investment in his family crypto business from foreign governments and his blatant conflicts of interest,” Lynch said in a statement.

“The volatile and risky nature of crypto products and the lack of investor protections will likely have devastating consequences on Americans’ financial lives, and Congress cannot allow it to undermine our traditional financial markets, which are the envy of the world.”

A press release from the U.S. House Committee on Financial Services via Waters’ office said that the initiative builds on efforts by committee Democrats to push back on Republican-led crypto legislation while raising concerns about Trump’s involvement in the sector.

Waters and others also introduced the “Stop TRUMP in Crypto Act,” which would bar the president, vice president, members of Congress and their families from engaging in crypto-related financial activity.

Democrats later used a procedural maneuver to hold a second hearing with their own witnesses and organized a session with experts to review the Clarity Act. During the bill’s markup, Democrats proposed nearly 30 amendments, all of which were rejected.

Separately, under Waters’ leadership, the committee has created task forces on financial technology and artificial intelligence. It also formed a digital assets working group, which held 22 hearings during the past two congressional sessions to examine developments in the crypto space.

Late last month, Federal Housing Finance Agency Director Bill Pulte announced that the government-sponsored enterprises Fannie Mae and Freddie Mac will begin preparing for the use of cryptocurrency in the mortgages they purchase.

The directive lacked specifics on how the GSEs will integrate crypto into risk models, underwriting or collateral pricing. Despite that, some mortgage professionals think there is value in pursuing crypto-backed lending — especially in the non-QM space.

The FHFA‘s directive provides few details on how Fannie and Freddie will integrate crypto into risk models, underwrite loans or price collateral.

“I think there are a lot of first-time homebuyers that have ventured off into this space. They’ve made some good money and they, just like nonqualified borrowers in general, are having a hard time getting access to capital through traditional means,” Roby Robertson of LoanLogics told HousingWire.

On Thursday, the Senate confirmed Jonathan Gould as head of the Office of the Comptroller of the Currency (OCC). That move is expected to advance the Trump administration’s pro-crypto agency as Gould has previous experience with a company that specializes in crypto mining hardware and supports more lenient oversight of banks in relation to crypto.