U.S. Treasury Secretary Bessent expressed support for the encryption bill, while the Democrats angrily criticized the "Trump coin dinner" controversy.

Two cryptocurrency-related bills in the United States Congress are currently in the deliberation stage. U.S. Treasury Secretary Scott Bessent expressed support for the advancement of the stablecoin and market structure bills during the congressional hearing on May 7, believing it would help the U.S. lead over China in the digital asset space. However, the Democratic camp is furious over the controversy surrounding Trump and the "private dinner" with meme coin TRUMP holders, opting to collectively boycott the deliberation process. The battle over the cryptocurrency bills within Congress is about to ignite.

Key Timeline and Event Review

May 6: Republicans throw out two draft bills

Draft of the "Digital Asset Market Structure Act": Proposed by Republican members of the House of Representatives, it regulates the compliance responsibilities of trading platforms, issuers, and custodians.

"GENIUS Stablecoin Act": A regulatory framework is set for the issuance mechanism, reserves, and issuer responsibilities of stablecoins, expected to be submitted for a Senate vote on May 8.

May 7: Treasury Secretary Besant attended the House hearing and expressed support for the bill.

Beckent stated that the United States should become the preferred destination for global digital assets in order to maintain its technological advantage over China.

"A good market structure and stablecoin legislation will help achieve this goal." This aligns with Trump's assertion during the 2024 campaign: "Make America the global capital of Crypto Assets."

U.S. Treasury Secretary Yellen also tweeted support for the encryption bill. Why do these two bills affect the Crypto Assets industry?

Legalization and Regulation of Stablecoins: The "GENIUS Act" will establish a legal basis and regulatory framework for the U.S. stablecoin market, significantly impacting mainstream stablecoins such as Circle (USDC) and Tether (USDT).

Exchanges and issuance platforms will be regulated: The market structure bill clearly distinguishes whether "crypto assets are securities or commodities," which is crucial for the compliance strategies of exchanges like Coinbase and Binance.

Policy direction is leaning towards Trump: Treasury Secretary Mnuchin is aligned with Trump, leading the market to expect that the U.S. is likely to pass a "Trump version of the encryption regulatory framework" in the coming months.

Democrats Push Back: Criticize Trump's Cryptocurrency Conflict of Interest, Collectively Boycott Review

But just a day before Besant expressed support, Democratic lawmakers collectively walked out of the House chamber to protest the controversy over Trump and the "private dinner" with TRUMP coin holders, and specifically questioned the political motives behind these two bills.

Democratic leader of the House Financial Services Committee Maxine Waters took the lead in boycotting, stating that the investigation should prioritize "Trump's encryption conflict of interest."

Nine Democratic senators jointly issued a statement opposing the current version of the "GENIUS Act," calling for strengthened anti-money laundering measures, restrictions on foreign issuers, and national security safeguards.

The image shows the scene of Democratic leader Maxine Waters questioning at the House Financial Services Committee.

Currently, although the Republican Party holds a majority in both houses of Congress, whether they can successfully pass the two bills remains full of variables.

(TRUMP coin holders enjoy exclusive dinner opportunity! The first 220 will be invited to dine with Trump )

This article reports that Treasury Secretary Bessent expressed support for the encryption bill, while the Democrats criticized it furiously as the "Trump Coin dinner" controversy, first appearing on Chain News ABMedia.