CLARITY Act: Crypto Bill Faces Backlash Over President Trump’s Meme Coin Ties

During a June 4 hearing in the House Financial Services Committee, Representative Maxine Waters raised concerns over what she sees as a major gap in the proposed Digital Asset Market Clarity (CLARITY) Act.

Waters pointed to a private dinner President Trump hosted for his top meme coin supporters, an event that reportedly brought in $148 million, and warned that without specific rules, the bill might allow the president to benefit personally from future crypto policies.

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She said it leaves room for risky practices to continue unchecked and could expose investors to more harm. She also argued that the bill offers little help for victims of fraud and fails to include penalties for wrongdoing in the crypto industry.

Committee Chair French Hill stated that the lack of a federal framework has left digital asset businesses uncertain about how to operate.

According to him, without a defined role for regulators like the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), both startups and investors are left unsure about the rules that apply to them.

However, former CFTC Chair Timothy Massad called President Trump’s role in crypto "a taint" and warned that it could blur the line between public interest and personal benefit. Massad said it is hard to know whether the president’s actions are aimed at improving the industry or boosting his own gains.

On May 28, former CFTC Chair Rostin Behnam shared his views on the US crypto market. What did he say? Read the full story.