- Democrats launch “Anti-Crypto Corruption Week” to fight GOP-backed crypto legislation.
- Waters links crypto bills to Trump’s $1.2B gain and alleged self-enrichment scheme.
- Lynch warns halting CBDC research gives China an edge in global digital finance.
Democratic lawmakers, led by Rep. Maxine Waters and Rep. Stephen Lynch, have announced “Anti-Crypto Corruption Week” to oppose three Republican-supported cryptocurrency bills. The CLARITY Act, GENIUS Act, and Anti-CBDC bill are at the center of the conflict. Democrats argue these measures lack vital consumer protections and would open the door to what they describe as “Trump’s crypto corruption.” The initiative begins next week in Washington.
This effort comes in direct response to the GOP’s planned “crypto week” starting July 14, which aims to fast-track the bills. Waters and Lynch, both senior members of the House Financial Services Committee, are leading the Democratic counter-effort. They warn that the proposed legislation could compromise financial stability and national security while enabling unregulated crypto growth.
Trump-Linked Crypto Bills Face Democratic Fire
Waters stated that the CLARITY Act and GENIUS Act would erode federal oversight by stripping away essential regulatory protections. She noted that the absence of these protections would leave investors exposed to fraud and manipulation while benefiting private crypto interests. Lynch supported her concerns, calling the bills a “dangerous step backward” for responsible digital asset regulation.
Democrats are also linking the legislation to President Donald Trump’s growing involvement in the crypto industry. Since 2024, Trump has publicly supported digital assets, launched crypto tokens, and backed companies in the sector. According to financial reports, Trump has personally gained over $1.2 billion from various crypto ventures.
Waters warned that if passed, these bills would give a stamp of approval to what she described as Trump’s self-enrichment scheme. She accused him of using crypto to benefit himself, his family, and politically connected billionaires, at the expense of the public and investor trust.
Crypto Bills Risk U.S. Security, Lynch Warns
Lynch echoed the warning, saying the legislation ignores major risks, including conflicts of interest, foreign influence, and the absence of enforcement tools. He pointed to Trump’s alleged business ties with foreign governments through crypto investments as a serious national security threat. According to Lynch, Republicans are “doing the bidding of the crypto industry” while ignoring these vulnerabilities.
One of the main points of issue is the Anti-CBDC Surveillance State Act, introduced by Republican Representative Tom Emmer on March 6. The legislation seeks to block the Federal Reserve from developing a Central Bank Digital Currency (CBDC). Emmer argues that a government-issued digital dollar could pose privacy concerns by allowing excessive surveillance. Democrats, however, strongly reject this perspective.
Lynch cautioned that stopping progress on a U.S. CBDC could undermine the country’s global competitiveness. He highlighted that China is moving ahead with its digital currency efforts. The People’s Bank of China has revealed plans for a global hub in Shanghai to support the e-CNY, aiming to position the digital yuan as a key player in a multi-currency international system.
Related: Trump’s First Crypto Legislation Could Arrive Soon with Stablecoin Vote
Freedom for Whom? Dems Question GOP Crypto Push
Waters said the contradiction is clear. Republicans reject a CBDC in the name of freedom, yet support handing control of the financial system to Trump’s private crypto interests. She emphasized that the fight is not against innovation but against corruption and unchecked power.
While the Republican-backed bills have support from the Blockchain Association, Chamber of Digital Commerce, and other industry groups, Democrats are using “Anti-Crypto Corruption Week” to raise public awareness. They plan to explain the risks of passing legislation that favors industry over integrity.
Both parties are now locked in a battle over the future of crypto regulation. The decisions made in the coming week could reshape how digital assets are governed in the U.S.—and who benefits from that system.
