US Lawmakers Clash Over Crypto Bills That Could Blow Open Wall Street’s Back Door

A high-stakes clash over crypto regulation is erupting as Republicans push controversial bills critics say imperil markets, embolden Trump’s digital gains, and erase oversight.

Democrats Move to Kill Crypto Bills With ‘Anti-Crypto Corruption Week’ Strike Plan

Democrats are intensifying their campaign against crypto deregulation, warning of national security and financial stability threats as Republicans accelerate a pro-crypto legislative agenda. U.S. Representative Stephen Lynch of Massachusetts and Representative Maxine Waters of California announced on July 11 that they “will lead Democrats in opposition to Republicans’ efforts to jam through the House three dangerous pieces of crypto legislation, including the so-called ‘CLARITY Act,’ the ‘GENIUS Act,’ and a bill banning a central bank digital currency.”

Speaking from Washington D.C., the two Democratic leaders underscored that their upcoming “Anti-Crypto Corruption Week” will focus public attention on the risks they believe are embedded in these proposals, which they argue serve to normalize unethical financial entanglements involving President Trump and digital assets. Lynch, who serves as Ranking Member on the Subcommittee on Digital Assets, raised concerns about the legislation weakening investor protections and enabling foreign interference. Waters, the top Democrat on the House Financial Services Committee, criticized the legislative package’s pace:

They’re doubling down by fast-tracking a dangerous package of crypto legislation through Congress.

She linked the bills to what she described as Trump’s financial misconduct, stating they would “make Congress complicit in Trump’s unprecedented crypto scam.”

The lawmakers emphasized that, rather than protecting consumers, the proposals shift power toward unregulated interests while undercutting regulatory oversight.

Their statement also delivered a broader political warning:

Republicans are sending a clear message to the American people that they are unwilling to stand up to the crypto lobby, and even more disturbingly, that they are too cowardly to stand up to the President.

During the week ahead, Democrats plan to elevate their resistance through hearings, legislative maneuvers, and the reintroduction of the “STOP Trump in Crypto Act.” Meanwhile, supporters of the legislation maintain that it promotes financial innovation and deters overreach in digital asset regulation.