US Representative Maxine Waters leads Democrats out of a joint hearing on digital assets in response to what she called “the corruption of the President of the United States” concerning cryptocurrencies.

In a May 6 joint hearing of the HFSC and House Committee on Agriculture, Waters remained standing while addressing Republican leadership, saying she intended to block proceedings due to US President Donald Trump’s “ownership of crypto” and oversight of government agencies.

U.S. Representative Maxine Waters, ranking member of the House Financial Services Committee (HFSC), led some Democratic lawmakers out of a joint hearing on digital assets in response to what she called “the corruption of the President of the United States” concerning cryptocurrencies.

After several attempts to speak and rising to interrupt Republican leadership, Waters remained standing while addressing the committee. She stated her intention to block the hearing and subsequent vote on a bill to create a framework for digital asset market structure in response to President Donald Trump’s “ownership of crypto” and oversight of government agencies.

Digital asset subcommittee Chair Bryan Steil, seemingly taking advantage of a loophole in committee rules, said Republican lawmakers would continue with the event as a “roundtable” rather than a hearing. Afterward, HFSC Chair French Hill urged lawmakers at the hearing to create a “lasting framework” on digital assets, but did not directly address any of Waters’ and Democrats’ concerns.

“The Chair is making this a partisan issue and shutting down the discussion of an important digital asset regulatory framework,” Hill said.

Earlier in the hearing, members of the House Committee on Agriculture also rose to leave the joint event. Digital asset subcommittee Ranking Member Bill Pascrell said Democrats would hold a shadow hearing to draft legislation “to establish certain digital asset prohibitions with respect to Government officers and employees.”

The hearing and efforts by Democrats to “hold [Trump] accountable” could slow or outright halt progress to pass the market structure bill. In the Senate, a group of Democrats pulled support for a stablecoin bill after raising concerns about corruption by the president and his family. Some Republican lawmakers, including Hill, have pushed back on Trump’s connections to the crypto industry.

Arkansas lawmaker reportedly said in March that the Trump family’s involvement makes crypto legislation “more complicated,” while Senators Cynthia Lummis and Lisa Murkowski were reportedly critical of the president’s memecoin dinner.

Competing bills to regulate crypto, ban government officials from owning it

The “roundtable” led by Republicans moved forward, discussing the crypto market structure framework that the party’s leadership proposed on May 5. Meanwhile, Democrats in the shadow hearing released a draft of legislation “to establish certain digital asset prohibitions with respect to Government officers and employees,” specifically naming the president, vice president, members of Congress, and their immediate families.

The bill proposed banning all covered individuals from owning crypto, serving as leadership for a digital asset issuer, or receiving compensation through the sale or trading of crypto. It also proposed prohibiting government agencies from investing in crypto.

Pascrell said the bill was in response to Trump’s “unprecedented corruption,” which he said had "impacted the integrity of our institutions and the public trust."

“President Trump has used his public office to enrich himself and his family through his involvement in cryptocurrencies, despite clear legal and ethical concerns,” Pascrell said in a statement. “This blatant abuse of power must be stopped.”

The bill, titled the "Digital Asset Anti-Corruption Act," was part of a broader strategy by Democrats to counter what they saw as Republican efforts to pass legislation that was too favorable to the crypto industry and failed to adequately address the president’s actions.

“We will be working to ensure that any legislation passed by Congress is in the best interests of the American people, not President Trump or his family,” Pascrell said.

Some Republican lawmakers, including House Agriculture Committee Chair G. Scott Harris, appeared open to discussing Democrats’ concerns. However, other GOP members expressed skepticism, arguing that Democrats were trying to derail bipartisan efforts to regulate crypto.

"I'm concerned that this is just a delay tactic by Democrats who don't want to see any crypto legislation passed this Congress," said Representative Tom Emmer, the top Republican on the HFSC.

Despite the differing views, lawmakers from both parties agreed that it was important to come together and find common ground on digital asset regulation.

"We have a lot of work to do, but I'm hopeful that we can reach a bipartisan agreement on legislation that is both effective and fair," said Representative Maxine Waters, the top Democrat on the HFSC.