As the regulatory landscape for digital assets in the US continues to evolve, two recent congressional discussions have highlighted the growing political divide over cryptocurrency policy. President Donald Trump’s executive order establishing a Working Group on Digital Asset Markets has drawn interest from top industry executives, while his decision to launch a meme coin has sparked criticism from lawmakers. At the same time, a House Financial Services Committee hearing saw Rep. Al Green challenged claims that the previous administration unfairly targeted crypto firms, instead shifting focus to Trump’s pro-crypto stance and financial ties to digital assets.
Congressman Al Green Slams Trump’s Crypto Agenda and Meme Coin Launch in Heated House Hearing
In a Feb. 6 hearing of the House Financial Services Committee’s Oversight and Investigations Subcommittee, Texas Representative Al Green sharply criticized US President Donald Trump for what he described as a “deregulatory pro-crypto agenda” while simultaneously launching a controversial meme coin. The hearing, which focused on the Biden administration’s stance on crypto regulation, quickly escalated into a broader political battle over the future of digital assets in the United States.
At the heart of the debate was the colloquial term “Operation Choke Point 2.0”, which Republican lawmakers and crypto executives have used to describe what they claim was an orchestrated effort by the Biden administration to debank the crypto industry. The term suggests that financial regulators, including the Federal Deposit Insurance Corporation (FDIC), pressured banks to cut ties with crypto firms.
Rep. Al Green, a senior Democrat on the committee, pushed back against these claims, arguing that there was never an actual policy to systematically debank crypto businesses. According to Green, the FDIC and other financial regulators simply issued warnings about the risks associated with banking crypto companies but did not explicitly prohibit financial institutions from engaging with them.
“Regulators asking banks to consider the risks associated with the cryptocurrency industry does not amount to debanking,” Green stated.
His comments were echoed by Better Markets banking policy director Shayna Olesiuk, who testified at the hearing. She argued that federal regulators’ actions were misunderstood and that risk assessments were a necessary part of financial oversight.
While the hearing was expected to focus on broader crypto regulatory concerns, Rep. Green shifted the spotlight to Trump’s recent launch of a meme coin. The coin, simply titled “TRUMP”, was introduced before he took office on Jan. 17, and its listing on major crypto exchanges has sparked both excitement and concern within the industry.
Green hinted that lawmakers should be paying closer attention to the ethics and implications of a sitting US president launching a cryptocurrency tied to his brand. However, neither subcommittee chair Dan Meuser nor Financial Services Committee chair French Hill directly addressed Trump’s meme coin in their opening statements.
The lack of discussion around TRUMP coin raised eyebrows, with some critics questioning whether the coin represents a conflict of interest. If financial policy decisions made under Trump’s administration directly benefit his own cryptocurrency, it could lead to further scrutiny from regulators and potential legal battles over ethics violations.
The hearing also saw a fiery exchange between lawmakers and Coinbase Chief Legal Officer Paul Grewal, who accused US financial regulators of engaging in “regulation by exhaustion.” According to Grewal, the FDIC deceived the public by claiming crypto firms had access to fair banking services, while simultaneously pressuring financial institutions to pause crypto-related activities.
A Freedom of Information Act (FOIA) lawsuit filed by Coinbase revealed that the FDIC sent letters to banks in 2022, advising them to “pause all crypto asset-related activity.” Grewal argued that this created an unfair regulatory environment, where banks were forced to walk away from crypto partnerships despite the absence of any formal law prohibiting such activities.
“You had question after question raised if even a hint of interest was shared that the bank wanted to enter into a basic service for its customers involving crypto or to facilitate basic crypto transactions,” Grewal testified.
His comments bring attention to a long-running battle between crypto firms and US regulators, as companies like Coinbase, Binance.US, and Kraken have faced repeated legal challenges and enforcement actions from agencies like the Securities and Exchange Commission (SEC).
Political Fallout and Impeachment Talk
Beyond the crypto debate, Rep. Green made headlines for another major announcement on Feb. 5, when he called for Trump’s impeachment over the president’s foreign policy stance regarding the Gaza Strip. Green accused Trump of pushing for US control of the region, a move that he said was “unconstitutional and against American values.” However, at the time of publication, congressional records did not show any official impeachment articles had been filed.
With Republicans controlling both the House of Representatives and the Senate, Green’s call for impeachment is unlikely to gain traction, but it adds to the growing political divide over Trump’s policies, including his handling of crypto regulations.
The Feb. 6 hearing was the first meeting of the House Financial Services Committee’s Oversight Subcommittee in the 119th session of Congress, under a Republican-led House and Senate. Lawmakers are expected to continue debating the role of digital assets in the US economy as Trump’s pro-crypto stance contrasts sharply with the stricter regulatory approach of the previous administration.
As the 2024 election season intensifies, crypto regulation is poised to become a major campaign issue, with industry leaders closely watching whether Trump’s policies will usher in a new era of crypto adoption or face intense political opposition from Democratic lawmakers.
For now, the question remains: Will Trump’s pro-crypto agenda and memecoin launch backfire politically, or will it solidify his position as the most crypto-friendly president in US history?
Trump’s Digital Asset Advisory Council: Crypto Executives Battle for Influence in US Policy Shift
The potential candidates for US President Donald Trump’s newly established Working Group on Digital Asset Markets have been revealed, sparking a battle among top crypto industry executives for a seat on the influential advisory panel. The group, formed through a recent executive order, marks a significant policy shift in the US government’s stance on digital assets, drawing both praise and scrutiny from key stakeholders.
According to a report from the New York Post, the list of potential members includes a lineup of high-profile figures from the cryptocurrency and fintech industries. Among those being considered are:
Marco Santori, former general counsel at Kraken
Brad Garlinghouse, co-founder and CEO of Ripple
Frank Chaparro, host of a popular crypto podcast
Jeremy Allaire, CEO of stablecoin issuer Circle
Brian Armstrong, CEO of Coinbase
Kris Marszalek, CEO of Crypto.com
While this is not an exhaustive list, sources suggest that final selections will be made based on candidates’ industry experience, regulatory expertise, and alignment with the administration’s digital asset policy goals. The potential inclusion of these figures signals a move toward collaborating with industry veterans rather than imposing strict oversight led by government bureaucrats.
President Trump’s executive order establishing the Working Group on Digital Asset Markets has been hailed as a “seismic shift” in the federal government’s approach to cryptocurrency. In a stark departure from previous administrations, the order prohibits the creation of a central bank digital currency (CBDC) in the US and instructs the newly formed advisory council to explore the potential for a strategic digital asset reserve, which could include Bitcoin (BTC).
The directive shows Trump’s increasingly pro-crypto stance, reinforcing his campaign rhetoric positioning Bitcoin and digital assets as vital components of economic innovation and national security. The order reads, “The digital asset industry plays a crucial role in innovation and economic development in the United States.”
Furthermore, the executive action mandates collaboration between key government agencies and the private sector to ensure a balanced regulatory framework. The Treasury Secretary, Attorney General, Commerce Secretary, Secretary of Homeland Security, and other senior officials will contribute to the Working Group’s policy discussions, alongside leading crypto executives.
Notably absent from the council’s mandatory membership are representatives from the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC)—two institutions that have played a controversial role in shaping US crypto policy.
The exclusion drew attention from Custodia Bank founder Caitlin Long, who has been a vocal critic of the FDIC’s stance on digital asset banking. Responding to the decision, she remarked, “Both tried to kill the industry through debanking and especially targeted my company, Custodia Bank. Both belong on the outside.”
The FDIC’s recent document release, spanning nearly 800 pages, further fueled controversy. It detailed correspondence between regulators and US firms seeking approval for crypto-related financial services. Many of these documents revealed pause letters and regulatory roadblocks that crypto businesses say were deliberate attempts to stall industry growth.
Acting FDIC Chairman Travis Hill has since expressed willingness to collaborate with the new Working Group on Digital Asset Markets, signaling potential future engagement despite being left out of the initial advisory board.
Trump’s shift toward a pro-crypto stance could have significant implications for the 2024 US presidential election, especially as cryptocurrency adoption continues to rise among retail investors, institutions, and major financial players.
This move stands in direct contrast to regulatory crackdowns under the Biden administration, which saw aggressive enforcement actions against major crypto exchanges, lending platforms, and staking services. Under Trump’s new approach, industry executives may have a direct line to policymaking, ensuring that future regulations do not stifle innovation or drive businesses offshore.
Coinbase CEO Brian Armstrong, who has been a vocal critic of regulatory uncertainty in the US, praised the shift in tone, stating, “Trump is forcing everyone to up their game.”
The potential for a US strategic digital asset reserve, particularly with Bitcoin at its core, is another game-changing element of this policy shift. If implemented, such a reserve could mark the first step toward Bitcoin being formally recognized as a national strategic asset, akin to gold and other store-of-value reserves held by central banks worldwide.
The Battle for Influence Begins
With some of the most powerful figures in the crypto industry now vying for a seat on the Working Group on Digital Asset Markets, the coming months will be crucial in shaping the future of digital asset regulation, adoption, and innovation in the United States.
As Trump’s crypto advisory council takes shape, the big question remains: Will this be a turning point for crypto-friendly policies in the US, or will regulatory battles continue to stall industry progress?
With Bitcoin hovering near all-time highs and institutional interest at record levels, the stakes have never been higher.
Source: https://coinpaper.com/7354/congressman-slams-trump-s-crypto-stance-and-industry-deregulation