Congresswoman Maxine Waters Criticizes President Trump for Exploiting Crypto Markets
During a recent House Financial Services Committee hearing, Congresswoman Maxine Waters did not hold back in her criticism of President Donald Trump’s involvement in the cryptocurrency space. She accused him of using crypto markets to boost his own wealth while leaving retail investors to suffer heavy losses.
One of the initiatives Waters condemned was the Official Trump Token (TRUMP), which has seen a significant decline of almost 90% since its peak in January. She highlighted the billions of dollars in investor value that were wiped out as a result of the token’s collapse, all while the president and his associates reportedly reaped substantial profits.
Financial disclosures presented during the hearing showed that Trump’s net worth had increased from $2.3 billion to $5.6 billion over the past year, with much of this growth attributed to his involvement in the crypto market.
In addition to the Official Trump Token, Waters also took aim at World Liberty Financial, a company with ties to the Trump family that recently launched USD1, a stablecoin backed by short-term US Treasury securities. She expressed concerns about the potential for regulatory favoritism, undisclosed political financing, or foreign influence facilitated by the stablecoin’s design.
Waters raised red flags about how the structure and redemption mechanism of USD1 closely mimic sovereign currency, potentially lending it legitimacy due to Trump’s association with the project. She called on lawmakers to include provisions in crypto legislation that address conflicts of interest involving public officials.
The congresswoman also criticized the subcommittee on digital assets for advancing legislation that she believes aligns with Trump’s crypto agenda. She warned that recent decisions could pave the way for the president to dominate the digital dollar landscape and receive preferential treatment for stablecoins linked to his political and business connections.
Throughout the hearing, Waters emphasized the need for strict ethical checks on crypto legislation, particularly when it involves a sitting president who is financially tied to the industry. She framed the issue as a test of regulatory independence and transparency in the face of growing political influence in emerging financial markets.
Despite these allegations, the White House has not issued a response, and World Liberty Financial declined to comment on the matter. As the debate over cryptocurrency regulation continues, it remains to be seen how lawmakers will address concerns about potential conflicts of interest and political influence in the crypto space.
