During a recent House Financial Services Committee hearing, Waters accused Trump of using his political power to profit from crypto ventures and warned that the stablecoin legislation under discussion could enable financial conflicts of interest. Alongside Senator Elizabeth Warren, Waters also urged the SEC to preserve records related to Trump’s crypto ties, and raised concerns about regulatory influence. Meanwhile, Trump made headlines with a new executive order imposing sweeping reciprocal tariffs on imports. He proposed a shift away from income tax toward tariff-based federal revenue collection. Maxine Waters Slams Trump Over Stablecoin Ties California Representative Maxine Waters voiced strong criticism against President Donald Trump’s growing involvement in the cryptocurrency sector. During an April 2 markup hearing of the US House Financial Services Committee, Waters accused Trump of using his political influence to profit from various crypto ventures, including the recent launch of a US dollar-pegged stablecoin backed by his family. Maxine Waters speaking at the markup hearing In her opening remarks, Waters argued that Trump and his associates were using the regulatory process to enrich themselves through “multiple crypto schemes.” She specifically referenced World Liberty Financial (WLFI), which is a company backed by Trump’s family, that launched the USD1 stablecoin in March. Waters also mentioned Trump’s previously launched meme coin and his reported ambitions to create a national cryptocurrency stockpile as part of a larger plan to replace the US dollar with his own digital currency. Waters warned that the stablecoin bill currently under discussion could set a dangerous precedent by allowing political figures to shape financial rules that benefit their own financial interests. She suggested that Trump’s ultimate goal could be to embed his stablecoin in government systems, from social security payments to tax collection, putting national financial stability at risk. Other lawmakers agreed with her concerns, and experts raised questions about potential conflicts of interest stemming from Trump’s crypto activities. Committee Chair French Hill acknowledged that the Trump family’s involvement in the crypto sector complicates efforts to draft effective legislation. Waters went on to declare that she will oppose the bill unless it included provisions to prevent a sitting president from owning a stablecoin business, and also urged her colleagues not to enable these kinds of conflicts. Markup hearing (Source: YouTube ) Meanwhile, Representative Bryan Steil, who introduced the STABLE Act, focused on the need to establish clear consumer protections and did not immediately address the specific concerns that were raised about Trump’s stablecoin. The committee also reviewed amendments to the STABLE Act alongside other legislative proposals aimed at curbing illicit financial activity and preventing the issuance of a US central bank digital currency. Overall, the markup hearing was a crucial step in determining whether the bills will actually advance to a full vote in the House of Representatives. Warren and Waters Demand SEC Transparency on Trump Ties Senator Elizabeth Warren and Representative Maxine Waters also recently urged the acting chair of the US Securities and Exchange Commission (SEC), Mark Uyeda, to preserve records related to World Liberty Financial (WLFI). In a letter dated April 2, the two Democratic lawmakers raised some concerns over what they described as an “unprecedented conflict of interest,” and suggested that Trump’s financial ties to WLFI could influence regulatory decisions in favor of the crypto industry. Part of the letter that was sent to Uyeda (Source: House Financial Services Committee ) Warren and Waters pointed out that Trump’s family stake in WLFI presents a very serious risk of interfering with the SEC’s mission to protect investors and ensure fair markets. They argued that this financial relationship may incentivize the Trump administration to pressure federal agencies, including the SEC, to adopt policies that directly benefit Trump’s crypto ventures. The letter followed WLFI’s announcement that it launched a stablecoin, USD1, on both the BNB Chain and Ethereum blockchain. The lawmakers referenced this launch along with Trump’s recent cryptocurrency-related initiatives, including the creation of a national cryptocurrency stockpile and the release of the TRUMP meme coin, as examples of potential conflicts of interest. Warren and Waters also placed a lot of emphasis on the fact that the American public deserves transparency regarding whether the SEC is acting independently or being influenced by the financial interests of the president’s family. They called on Uyeda to preserve all communications and documents between Trump, his family, and the SEC, as well as any records involving WLFI. The letter also drew attention to some of the recent changes at the SEC under Trump’s administration. Since appointing Uyeda as acting chair, the SEC reportedly dropped several investigations and enforcement actions against crypto firms, including some whose executives contributed to Trump’s 2024 presidential campaign. Trump’s nominee to permanently lead the SEC, Paul Atkins, is set to face a Senate Banking Committee vote, with a full Senate confirmation to follow if approved. Trump Orders Reciprocal Tariffs to Protect US Economy In other Trump-related news, the President signed an executive order imposing sweeping tariffs on imports in a move that is aimed at reshaping the US economic framework. The order establishes a 10% baseline tariff on all imports from every country and introduces reciprocal tariffs based on the rates US goods face abroad. Under this policy, the US will levy tariffs equal to roughly half the amount trading partners charge on American imports. For instance, since China imposes a 67% tariff on US products, the US will now place a 34% tariff on Chinese goods. Additionally, a flat 25% tariff has been introduced on all automobile imports. Trump’s reciprocal trade tariffs (Source: YouTube ) In announcing the order, Trump framed the tariffs as a return to a historic model of economic protectionism, and even suggested that the US experienced its greatest prosperity when it relied on tariff revenue rather than income tax. He specifically referenced the period from 1789 to 1913, and claimed that the country was wealthier and more economically secure before the introduction of the federal income tax. Trump also revived a proposal from his 2024 campaign to abolish the Internal Revenue Service (IRS) and replace federal revenue collection with tariffs alone. He argued that such a shift will relieve American taxpayers and eliminate the need for income-based taxation. According to data from accounting firm Dancing Numbers , the proposal could save US taxpayers between $134,809 and $325,561 over their lifetimes, depending on whether wage-based taxes at the state and local levels are also removed. Commerce Secretary Howard Lutnick, who assumed office in February, agreed with Trump’s stance, and endorsed the concept of an “External Revenue Service” funded by tariffs. Lutnick believes that tariff revenue will protect American workers and industries while reducing the financial burden on citizens, and argued that the current tax system demands too much from the public without delivering a balanced federal budget.
