California Representative Maxine Waters Announces New Legislation Targeting Crypto-Related Conflicts Involving Donald Trump
On May 22, the senior Democrat from the House Financial Services Committee revealed the Stop Trading, Retention, and Unfair Market Payoffs (TRUMP) in Crypto Act of 2025, or HR 3573.
The proposed bill seeks to ban the U.S. President, Vice President, members of Congress, and their family members from engaging in cryptocurrency activities that may be considered corrupt or unethical. Waters specifically referenced Trump and his family’s recent ventures into memecoins and stablecoins, including the launch of USD1, a dollar-backed token issued through World Liberty Financial.
Waters cited concerns over both Trump’s January memecoin launch—which included a token for Melania Trump—and a Bitcoin reserve plan supported by Trump’s sons.
“Trump’s crypto con is not just a scam to target investors,” she said.
“It’s also a dangerous backdoor for selling influence over American policies to the highest foreign bidder.”
Trump’s Crypto Dinner Sparks Political Backlash
The dinner has drawn criticism not only for its exclusive nature but also for its implications around policy influence. Waters and other critics say it raises questions about the intersection of digital asset promotion and political fundraising.
USD1 Stablecoin and Bitcoin Reserve Plans Under Scrutiny
The USD1 stablecoin, linked to Trump’s family, is issued via the World Liberty Financial platform.
Simultaneously, the Trump administration has discussed the idea of a national Bitcoin reserve. Trump’s sons reportedly support this concept through involvement in Bitcoin mining ventures. Waters’ bill appears to directly address such efforts by aiming to prevent top officials from using digital assets for personal gain or policy leverage.
The bill text, shared by the House Financial Services Committee Democrats, outlines a ban on holding, trading, or promoting cryptocurrencies by covered government figures and their immediate family members. While enforcement details remain limited, the bill’s language signals a broader effort to restrict political figures from influencing or benefiting from crypto markets.