US Crypto Regulation May Face Tough Shift as Waters Announces Bid for House Financial Services Committee Chair, Aims to Strengthen Industry Scrutiny

November 7 - According to Bloomberg, U.S. Representative Maxine Waters, a California Democrat, announced on November 6 her candidacy for Chair of the House Financial Services Committee. If successfully elected, she plans to strengthen oversight of the Trump administration and the financial services industry, focusing on areas including private equity, artificial intelligence, housing affordability, and digital assets.

Waters stated she will push for regulatory reform targeting the private equity industry, expand oversight of relevant institutions, and explore opportunities to broaden retail investors' access to private companies. Additionally, she plans to promote adaptation of the financial system to AI development and establish strict but fair regulatory rules for compliant cryptocurrency businesses.

Waters' overall stance on the crypto industry is cautious, emphasizing investor protection and federal regulation. She previously opposed the Republican-driven FIT21 crypto market structure bill, criticized conflicts of interest arising from Trump and his family's involvement in crypto businesses, and pushed for the Crypto Investor and Consumer Protection Act, requiring strengthened regulation of platform custody, proof of reserves, and customer asset protection. However, she is not categorically opposed to crypto innovation and has publicly stated support for advancing technology development under the premise of strengthened investor protection.

Another Democratic Representative, Sean Casten, is also competing for the committee chair position. His proposed agenda similarly addresses emerging risks from cryptocurrencies, prediction markets, and artificial intelligence, and emphasizes scrutinizing Trump's relationship with the crypto industry. The final selection is expected to be determined within the coming weeks.