Democrats, Republicans hold dueling crypto roundtables as clashes over Trump’s role mount

House Democrats and Republicans physically splintered Tuesday, holding separate meetings on cryptocurrency regulation as President Donald Trump’s digital asset involvement creates palpable tension. 

In one Capitol Hill room, Rep. Maxine Waters, D-Calif., the top Democrat on the House Financial Services Committee, led a roundtable focused on what she called “Trump’s crypto corruption and conflicts of interest.”

“I am deeply concerned that Republicans aren’t just ignoring Trump’s corruption, they are legitimizing Trump’s and his family’s efforts to enrich themselves on the backs of average Americans,” Waters said. 

Tensions flared Tuesday morning as some Democrats boycotted a scheduled joint hearing on cryptocurrency regulation hosted by the House Financial Services and Agriculture committees. Waters said she refused to participate because of Trump’s crypto holdings and his influence over federal agencies.

Republican members proceeded with their own roundtable. Waters, along with Reps. Sean Casten, D-Ill., and Brad Sherman, D-Calif., exited the room.

Trump and his family have embraced digital assets, launching their own memecoins shortly before his 2025 inauguration. His affiliated venture, World Liberty Financial, recently launched its own stablecoin. Trump also hosted a crypto-themed fundraiser Monday night for the MAGA Inc. super PAC.

The Capitol Hill discord comes amid efforts to pass legislation governing stablecoins and broader crypto regulation. On Monday, House Republicans released a discussion draft proposing new roles for the Commodity Futures Trading Commission and the Securities and Exchange Commission, including disclosure mandates.

Democrats’ roundtable 

At the Democrats’ roundtable, lawmakers and legal experts discussed crypto oversight and ethical standards for government officials. House Financial Services Democrats also had legislative draft text listed on their page to “establish certain digital asset prohibitions with respect to Government officers and employees, and for other purposes.”

Casten and Rep. Sylvia Garcia, D-Texas, raised concerns about unequal standards, noting the strict rules they follow, down to removing water bottle labels and parades. Meanwhile, they say, Trump is deeply involved in crypto. 

“They [Trumps] can parade around and do what they want and we can’t even be in a little parade in our local town officially,” Garcia said. 

Lawmakers and experts attending the roundtable also discussed how to move forward with crypto regulation. 

Timothy Massad, former chair of the CFTC, participated in the Democrats’ roundtable. Massad suggested during his opening remarks that Congress mandate that the Securities and Exchange Commission and the CFTC work together to create a self-regulatory organization that would then regulate crypto. 

“It’s a way of establishing jurisdiction over this market without rewriting the securities laws, without undermining the authority of the SEC or the CFTC and it brings those two agencies together, which I think is very important,” Massad said. 

At the end of the roundtable, Waters told Massad that categorizing crypto as something between a commodity and a security can “be worked out.”

“I think there’s some things we can do,” Waters said. “What I cannot work out is Trump’s corruption.” 

Republican’s roundtable

Rep. Angie Craig, D-Minn., who was present at the Republican roundtable, said she stayed because both sides need to work together.

“I’m here because I think we need to be engaged and part of the discussion to agree on the rules of the road as they relate to crypto,” Craig said. “It isn’t going away, and we have a responsibility to be here and be part of the solution.”

House Financial Services Committee member Rep. French Hill, R-Ark. pointed to prior years’ work to pass a crypto market structure bill, dubbed FIT 21, that garnered support from 71 Democrats. That bill is a “precursor” to their ongoing work, Hill said.

“We’re approaching it in a fresh way and this roundtable is essential to getting new views on how to go in a different direction,” he said. “To my friends on the other side of the aisle, our doors are always open.” 

Public spats 

While lawmakers debated inside, their official X (formerly Twitter) accounts traded barbs outside.

“While @RepMaxineWaters rushed out the door, adults remain in the room,” the House Committee on Agriculture, led by Republicans, posted on X. “Republicans and Democrats are working together on bipartisan efforts to bring clarity to the digital asset space.”

Those running the Democrats’ House Financial Services Committee X account weren’t having it. 

“This is rich coming from the party of full-blown ‘adults’ too scared to stand up to a President breaking the law right in front of us. Imagine being that afraid of Donald Trump coming after you,” they responded. “Go find some courage, cowards.”

The Agriculture Committee later posted video of Waters “blowing a kiss” to now-imprisoned former FTX CEO Sam Bankman-Fried.

The Democrats’ page quickly pushed back.

Democrats responded: “Meanwhile, the leader of your party is a twice-impeached, convicted felon. Try again.”

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