Tensions over cryptocurrency regulations escalated during the June 4 session of the US House of Representatives Financial Services Committee. But as much as the technical details of the hearing, the controversy surrounding former President Donald Trump's name dominated the agenda. While the Digital Asset Market Structure bill, known as the CLARITY Act, was discussed, allegations that Trump's ties to the crypto world could be used for personal gain through this law raised tensions in Congress.
Heavy accusation against Trump: “The CLARITY Act is being used for personal gain”
One of the bill's fiercest opponents, Democratic Representative Maxine Waters, took aim at Republicans seeking to fast-track the CLARITY bill, noting that it offers various loopholes to securities firms and does not adequately protect consumers. Waters' main criticism, however, was directed at former President Trump. Emphasizing Trump's business ties in the crypto sector, Waters warned that the CLARITY Act could serve his personal interests.
If the law is enacted, according to Waters, Trump could be in a position to “transfer Americans' money into his own digital wallet.” This revelation, especially when combined with news that TrumpCoin investors paid $148 million for a dinner held in recent weeks, increased the scale of the scandal.
Trump family crypto platform under scrutiny
The controversy is not limited to Trump's personal interests. Democratic lawmakers are also demanding scrutiny of World Liberty Financial, a cryptocurrency platform allegedly backed by the Trump family. The allegations about the platform raised the possibility of a conflict of interest before lawmakers. Former CFTC (Commodity Futures Trading Commission) Chairman Timothy Massad also stated that Trump's crypto initiatives have damaged the industry's reputation and argued that it would be irresponsible to regulate without investigating existing links.
Maxine Waters also said that the CLARITY Act poses not only an economic but also a national security risk. Emphasizing that consumer protection is insufficient and that there are not enough sanctions against crypto scams, Waters stated that the law could victimize millions of Americans.
The future of CLARITY is uncertain
The GENIUS Act, another important law on crypto regulations, was approved in May 2025. However, the process for the CLARITY Act remains unclear. According to Maxine Waters, the bill could be voted on by the committee in Congress on June 10th at the earliest. However, it remains to be seen how the Trump-centered debate will take shape before the vote and how it will affect the legislative process. The fate of CLARITY could affect not only regulations in the US but also the direction of global crypto markets. Time will tell what will happen in the coming period.
