Lawmakers Launch Crypto Week with Regulatory Focus
Washington‘s highly anticipated Crypto Week kicked off in the U.S. The House of Representatives was heated on Tuesday, as legislators began examining three cryptocurrency bills:
- The GENIUS Act – focused on stablecoins
- The CLARITY Act – aimed at creating a regulatory framework for digital assets
- The Anti-CBDC Surveillance State Act – designed to ban Central Bank Digital Currencies (CBDCs)
The conversation began Monday with the House Rules Committee, chaired by Republicans. However, the discussion quickly shifted to other political matters like the defense budget.
Democrats Slam GOP Crypto Agenda
Rep. Jim McGovern, a Democratic Representative, sharply criticized the Republican proposals, calling them a “GOP crypto giveaway” designed to enrich the wealthy and deceive consumers. “No one in my district has ever asked me to help crypto millionaires get richer or make it easier to con people,” McGovern said.
The GOP has been accused of promoting legislation that benefits Trump-linked crypto companies like World Liberty Financial, which reportedly manages the USD1 stablecoin and the TRUMP meme coin.
Prominent Democrats such as Rep. Maxine Waters and Sen. Adam Schiff have raised red flags. Waters proposed amendments to the GENIUS Act to bar elected officials and their families from owning or promoting cryptocurrencies. Schiff criticized the legislation as containing “dangerous entanglements” between politics and crypto profiteering.
GOP Defends Legislation as Innovation-Driven
Republicans defended the bills as essential for financial innovation and maintaining the U.S. edge in global markets. Rep. Virginia Foxx, chair of the committee, called the GENIUS Act “historic,” saying it offers a clear federal framework for stablecoins and regulatory certainty for digital asset issuers.
Republicans cautioned against overregulating technology, emphasizing that the bills would protect consumers while positioning the U.S. as a leader in blockchain and digital finance.
Rep. Warren Davidson added an amendment reinforcing Americans’ right to self-custody digital assets, aligning the bill more with crypto-liberty.
Bipartisan Support Remains Elusive
While Republicans are optimistic, bipartisan support remains uncertain. The GOP holds a narrow majority in the House but has lost control of the Senate, making Democratic cooperation crucial. So far, Democrats have united in opposing the bills, citing concerns over Trump-aligned crypto interests and legislative priorities.
Meanwhile, the House is simultaneously engaged in debate over the Defense Department Appropriations Act, further complicating the crypto bill timeline. Republicans hope to advance the legislation before the upcoming August recess, leaving limited time for consensus.
Conclusion
The debate over regulating digital assets has turned highly partisan during Crypto Week on Capitol Hill. Republicans frame their proposals as vital to competing with China and securing U.S. leadership in crypto, while Democrats warn the bills could serve Trump Republicans and enrich a small elite.
With time running out before summer recess, the fate of the GENIUS Act, CLARITY Act, and Anti-CBDC Surveillance State Act may soon determine the direction of U.S. crypto policy—and whether bipartisan compromise is still possible in today’s divided Congress.
