Democrats Plan Walkout Amid Crypto Policy Dispute
Sources confirm that top-ranking House Democrats , including Rep. Maxine Waters , are preparing to walk out of a joint congressional hearing on cryptocurrency legislation scheduled for May 6, 2025 , citing concerns over Trump’s growing crypto influence . The move reflects growing unease among Democratic lawmakers over what they see as increasing political interference by former President Donald Trump in the digital asset space .
The planned boycott centers around a hearing titled “American Innovation and the Future of Digital Assets: A Blueprint for the 21st Century,” jointly organized by the House Financial Services Committee and the House Agriculture Committee .
According to reports from Punchbowl News and Politico , Waters and other Democratic members will not attend unless concerns about Trump-backed crypto initiatives are addressed. A Democratic source close to the House Financial Services Committee confirmed the news to The Block and revealed plans for a parallel roundtable event hosted by Democrats .
Republican Leadership Stresses Bipartisan Collaboration
Chairman French Hill of the House Financial Services Committee issued a statement urging Waters to reconsider her stance .
“Since the last Congress, we’ve had productive bipartisan, bicameral discussions on market structure legislation, ” said a spokesperson for Rep. Hill . “We encourage the Ranking Member to attend tomorrow’s hearing to express her views and reconsider her decision to object .”
Meanwhile, Republicans released a discussion draft of their crypto regulation bill ahead of the hearing — a version closely resembling previous committee proposals. The legislation includes provisions on stablecoin oversight , which has recently drawn sharp criticism from Senate Democrats .ovisions on stablecoin oversight, which has recently drawn sharp criticism from Senate Democrats.
Senate Dems Raise Red Flags Over Stablecoin Bill
In a coordinated response, a group of Democratic senators including Ruben Gallego, Mark Warner, Raphael Warnock, and Adam Schiff released a statement warning that the current version of the bill contains unresolved issues .
“While we are eager to continue working with our colleagues to address these issues, we would be unable to vote for cloture should the current version of the bill come to the floor,” the senators said.
Their concerns follow rising tensions over Trump’s deepening ties to the crypto industry , including his family’s involvement in decentralized finance (DeFi) projects and memecoins.
Trump Doubles Down on Crypto Engagement
Former President Trump has intensified his engagement with the crypto community, announcing two exclusive fundraising events tied to digital assets:
- A Crypto & AI Innovators Dinner , hosted by MAGA Inc., featuring tech investor David Sacks.
- A gala dinner for top holders of the $TRUMP memecoin, set for later this month.
These events have sparked ethical concerns from critics like Sen. Elizabeth Warren and Rep. Adam Schiff, who accuse Trump of offering privileged access in exchange for financial backing.
During an interview with NBC’s Kristen Welker, Trump dismissed allegations of conflicts of interest, calling the token’s valuation “meaningless” and denying any personal profit.
“I’m not profiting from anything. All I’m doing is, I started this long before the election. I want crypto. I think crypto’s important because if we don’t do it, China’s going to,” Trump said.
$TRUMP Token Raises Questions About Transparency
Data from Chainalysis shows that nearly 80% of the $TRUMP token supply is controlled by the Trump Organization and its affiliates. Additionally, approximately $325 million in trading fees have flowed to insider wallets since the token launched in January .
Although Trump claims no direct financial benefit, critics argue the built-in reward mechanism creates a system where major gains flow to those closest to the project .
Crypto Industry Divided Over Trump’s Involvement
Reactions within the crypto sector remain mixed. While some praise Trump for boosting mainstream awareness , others raise concerns about ethics and governance .
Cathy Yoon , General Counsel at Wormhole , told The Block :
“I don’t think generally promoting $TRUMP is inherently illegal, but it does raise issues of integrity and a ton of ethical questions .”
Olta Andoni , a prominent crypto lawyer , noted that while the token itself may not break laws, its timing and visibility could pose reputational risks.
“Maybe the timing wasn’t good but at the same time we wanted Trump to support crypto , no? And he started with his first NFT project , now memecoin …”
What’s Next for U.S. Crypto Regulation?
As political divisions deepen , the path forward for comprehensive crypto regulation remains uncertain. With both parties increasingly framing crypto policy through a partisan lens , the risk of legislative gridlock grows .
The upcoming hearing — and whether Democrats ultimately attend — will serve as a critical test of bipartisanship in one of the most dynamic and controversial sectors of the modern economy.
