The Trump-linked crypto firm World Liberty Financial Inc. faced fresh scrutiny during Thursday's House Financial Services Committee hearing, with Representative Gregory Meeks questioning Comptroller of the Currency Jonathan Gould about potential conflicts of interest. When Meeks asked whether Gould is "working for the American people or working as a Trump fixer, which is it?" Gould responded that "Your attempts to continue to pressure me are the only political pressure I've felt from anyone other than your Senate colleagues." He emphasized that "That is very unfortunate and unprecedented," insisting his agency will do its job under the statute governing charters. Democratic lawmakers have argued that World Liberty's ties to President Donald Trump and his family raise conflict concerns, citing the firm's foreign investors and crypto partners, including Binance, while questioning whether the company should receive a U.S. banking charter.
Six Senate Republicans have challenged existing crypto capital standards and called on federal regulators to provide clearer guidance for banks handling digital assets. According to a statement released Thursday, Senators Cynthia Lummis and five other Republican senators sent a letter last week to Federal Reserve Vice Chair for Supervision Michelle Bowman, Federal Deposit Insurance Corporation Chair Travis Hill, and Comptroller of the Currency Jonathan Gould. The lawmakers criticized Basel Committee standards that assign a 1,250% risk weight to certain digital assets, arguing banks need a more balanced framework for capital requirements. The senators, including Senators Dan Sullivan, Bill Hagerty, Bernie Moreno, Ted Budd, and Jon Husted, urged regulators to adopt a technology-neutral approach that would allow banks to participate in digital asset markets without being disadvantaged solely because of the technology used.
The regulators provided updates on implementing the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, with Federal Deposit Insurance Corporation Chairman Travis Hill announcing that another rule requiring customer identification programs for stablecoin issuers is coming in the very near future. The regulators have already issued several proposed rules to put the new law into place, with Kyle Hauptman, chairman of the National Credit Union Administration, touting the U.S. rise of stablecoins. "As stablecoins are more widely adopted, we Americans may no longer be made fun of for speaking about how many 'business days' a payment will take to settle," Hauptman said, noting that "Every day is a business day with stablecoins." However, Representative Brad Sherman argued against government payments in stablecoins, stating "I can't think of a worse idea" as it would sanctify an alternative to the U.S. dollar. Sherman also noted that the GENIUS Act bars stablecoin issuers from paying interest, warning that lawyers may look for ways around that restriction.
A lawmaker asked Federal Reserve Vice Chair for Supervision Michelle Bowman about the Fed master account granted to crypto exchange Kraken, with Bowman clarifying that the approval granted "very limited access to the payments system" and for an initially narrow duration of 12 months. The rest of the crypto industry is keenly interested in the outcome of the Fed's policy work on opening such access to the central bank's payments system and services. Ripple CEO Brad Garlinghouse has issued a harsh warning about the narrowing legislative window, stating that if the Senate Banking Committee does not hold a markup hearing in the next two weeks, the chances of passing crypto legislation drop 'precisely.' Major U.S. banking groups continue pushing back against current stablecoin yield restrictions, with the American Bankers Association and Bank Policy Institute arguing that proposed language still leaves room for crypto platforms to offer rewards through membership programs.
The committee is also tracking efforts to update tax regulations around digital assets, with the House Ways and Means Committee working on tax issues and a bipartisan group of lawmakers reintroducing a bill specifically targeting crypto taxes earlier this month. Hill noted that the digital assets ecosystem has become increasingly engaged in both policy points and political activity, with the industry's political engagement important for the 2026 election that will determine control of the House of Representatives and Senate. The committee has been engaged in digital assets for the past 10 years, with former Rep. Patrick McHenry and Democratic counterpart Rep. Maxine Waters leading previous efforts.
