Congress Kicks Off Crypto Week as Democrats Dig In Their Heels—What’s at Stake?

Washington's crypto showdown begins—and the political trenches are already drawn.

Democrats vs. Digital Assets: Lawmakers return to Capitol Hill with blockchain regulation at the top of the agenda. But with sharp resistance from the left, will this week end in progress or political theater?

The Stakes: As institutional money floods into Bitcoin ETFs and stablecoin volumes hit record highs, Congress risks becoming irrelevant to the real financial revolution happening outside its marble halls. (Meanwhile, Wall Street bankers quietly reposition their yacht purchases in anticipation.)

One thing's certain: The crypto industry isn't waiting for permission. DeFi protocols continue eating traditional finance's lunch while politicians argue over committee seating charts.

TLDR

• The House Rules Committee approved four major crypto-related bills for debate as Crypto Week began.
• The Digital Asset Market Clarity Act aims to define regulatory roles between the SEC and CFTC.
• Rep. Maxine Waters strongly opposed the Clarity and GENIUS Acts, citing financial and national security risks.
• The GENIUS Act, already passed in the Senate, is set for House debate and faces growing criticism.
• The Anti-CBDC Surveillance State Act seeks to ban the issuance of a U.S. central bank digital currency.

The United States House of Representatives has moved four major bills forward as “Crypto Week” begins on Capitol Hill. The House Rules Committee approved debate on legislation that could reshape digital asset regulation, stablecoin oversight, and CBDC restrictions. However, the effort has sparked immediate backlash from leading Democrats, who warn of possible risks and political consequences.

Crypto Week Pushes Digital Asset Reforms

House members advanced H.R. 3633, the Digital Asset Market Clarity Act of 2025, aiming to define regulatory boundaries between the SEC and CFTC. This bill seeks to establish a clearer framework for crypto assets, including which agencies hold jurisdiction over specific token classifications. Supporters argue it enhances innovation, but critics say it reduces key protections for American investors.

🚨NOTICE OF ACTION🚨

The Committee granted, by a recorded vote of 8-4, a rule providing for consideration of H.R. 4016, H.R. 3633, H.R. 1919, and S. 1582.

Thanks to @HouseAppropsGOP, @FinancialCmte, and @HouseAgGOP for their testimony tonight. pic.twitter.com/oAqzRkXVRa

— House Rules Committee (@RulesReps) July 15, 2025

Rep. Maxine Waters expressed opposition, arguing the bill WOULD weaken the SEC’s authority to regulate digital markets effectively. She pointed to past failures, including FTX, as evidence that regulatory oversight must remain strong. Waters claimed the bill’s language would allow market manipulation while limiting preventative enforcement.

Crypto Week supporters maintain that the Clarity Act reflects necessary modernization in financial policy and promotes competitiveness in blockchain development. They believe current policies hinder growth and innovation across digital finance platforms. Republican lawmakers say the bill represents a shift toward pro-innovation legislation amid international advancements.

GENIUS Act Draws Fire Over Consumer and Security Risks

The Senate-approved GENIUS Act (S.1582) also moved to the House floor for debate as part of Crypto Week’s broader agenda. It proposes to streamline the registration process for stablecoin issuers while increasing access to decentralized financial services. The bill’s supporters highlight its role in encouraging responsible development of blockchain infrastructure in the U.S.

Opponents argue that the GENIUS Act lacks adequate consumer protections and opens the door to foreign influence through underregulated stablecoin systems. Waters criticized its provisions for not including sufficient oversight funding and for weakening national security safeguards. She called the act a legislative attempt to accommodate crypto lobbying interests.

Democratic leaders also questioned whether the bill aligns with broader financial stability goals. During Crypto Week, they voiced concern that the GENIUS Act prioritizes corporate interests over public accountability. The bill remains central in ongoing debate over the future of digital currency regulation.

Anti-CBDC Surveillance State Act Faces Political Pushback

Crypto Week also includes H.R. 1919 and the Anti-CBDC Surveillance State Act, which aims to ban a U.S. central bank digital currency. The bill restricts the Federal Reserve from issuing a digital dollar, citing civil liberty and privacy concerns. Supporters argue it prevents potential overreach and surveillance by federal institutions.

Democrats say the legislation is premature and undermines strategic planning for future digital currency systems. Waters and others argue that banning a CBDC could restrict policy options needed for long-term financial innovation. The debate underscores a sharp divide between parties during Crypto Week’s legislative push.

In response, Rep. Waters and Rep. Lynch launched the “Anti-Crypto Corruption Week” to counter Republican-backed initiatives. They accuse the opposing party of enabling corporate influence over national crypto regulation.