“This committee is setting an unacceptable and dangerous precedent”

“With this stablecoin bill, this committee is setting an unacceptable and dangerous precedent, validating the president and his insiders’ efforts to write rules of the road that will enrich themselves at the expense of everyone else,” Waters said.

House Financial Services Committee Chair Maxine Waters on Thursday threatened to scuttle any stablecoin bill if her colleagues did not also move to prevent former President Donald Trump from profiting off crypto.

The California Democrat’s remarks came as the committee debated the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act, introduced by Representative Bryan Steil, a Republican from Wisconsin. The bill, which is largely focused on consumer safeguards, would create a framework for private stablecoins in the U.S.

However, Waters argued that unless Congress also addressed Trump’s financial ties to crypto, the legislation should not advance.

“We are setting an unacceptable and dangerous precedent, validating the president and his insiders’ efforts to write rules of the road that will enrich themselves at the expense of everyone else,” she said.

The committee also considered amendments to the STABLE Act and other bills related to financial regulations, including measures to combat illicit finance and prevent the government from launching a central bank digital currency (CBDC). The markup hearing was a critical step before the bills could move forward for a full vote in the House.

Earlier this year, Trump announced plans to launch his own branded token, Trump Digital. The former president did not disclose details of the project, but said he was considering different blockchain technologies for the token.

According to a recent filing with the U.S. Securities and Exchange Commission, Trump’s new media company, Trump Media & Technology Trust, is planning to offer a proprietary token called “Trump Digital” to members of its social media platform, Truth Social.

The company said it may use blockchain technology to process transactions for the token, adding that it is still evaluating the most suitable technology.

In her remarks on Thursday, Maxine Waters urged her colleagues not to support any stablecoin legislation that would allow Trump to profit from the industry.

“If there is no effort to block the President of the United States of America from going forth and having his own stablecoin business … I will never be able to agree on supporting this bill, and I would ask other members not to be enablers,” she said.

While Maxine Waters’ opposition was clear, Bryan Steil did not respond to her concerns about Trump’s crypto involvement, instead emphasizing the need for regulatory oversight in the industry.

“We need to get this right, and we need to move quickly to provide regulatory certainty in this space,” said the Republican lawmaker.

The debate highlighted growing tensions over digital asset regulation, particularly as high-profile figures like Trump become more involved. Some lawmakers believe the government should establish clearer rules, while others worry about conflicts of interest and political figures profiting from financial policies they influence.

The committee’s discussions will determine how cryptocurrency legislation moves forward, with lawmakers weighing the risks and benefits of stablecoin adoption in the U.S. financial system.