The top Democrat on the House Financial Services Committee has spent the last two years acting as a prominent bulwark against the influence of the crypto sector in Congress.
But in an interview Wednesday, Rep. Maxine Waters (D-Calif.) acknowledged how the political environment has changed in recent months.
“Crypto is inevitable,” Waters said. “There are countries that are way ahead of us.”
That’s not something we’ve heard Waters say before. But the broader landscape around Waters has also changed.
On the trail, Vice President Kamala Harris has pitched herself as a more business-friendly Democrat than President Joe Biden. That includes a tentative embrace of crypto at a fundraiser earlier this month, where Harris said her administration would “encourage innovative technologies like Al and digital assets while protecting our consumers and investors.”
We asked Waters how she was feeling about crypto these days, given the Harris campaign’s recent positioning. The California Democrat responded by saying crypto was “inevitable.” And while Waters’ full response makes clear she’s still prioritizing consumer protection in these discussions, the change of tone was persistent:
If Democrats retake the House in November, Waters is expected to resume the mantle of Financial Services Committee chair. As ranking member, Waters has spent much of the 118th Congress opposing — or at least tempering — the crypto sector’s top priorities. That includes the FIT for 21st Century Act, which passed the House with 71 votes in May.
When FIT came up for a floor vote, Waters pilloried the effort led by Reps. Patrick McHenry (R-N.C.) and G.T. Thompson (R-Pa.). Waters said the bill “would deregulate a substantial portion of the crypto industry,” and she implored Democrats to hold the line: “Don’t be afraid of Big Crypto and stand for everyday investors and consumers,” she said.
Given that resistance last spring, we asked Waters how she was feeling about the sector writ large. Waters said she is “not opposed to crypto,” and she again pointed to international crypto developments. “I think we may even be behind, as I look worldwide, on digital,” Waters said.
Waters suggested change was in the air earlier this week, when senior officials at the Securities and Exchange Commission testified before the banking panel. Waters said she wanted to strike a “grand bargain” on stablecoins. It sounds like that may not be the last deal she tries to cut.
— Brendan Pedersen
