Rep. Maxine Waters (D-Calif.), a key Democrat and influential voice in the House Financial Services Committee, has been a vocal critic of the crypto sector over the past two years.
What Happened: In an interview with Punchbowl News, Waters now acknowledged a shift in her perspective on the industry, stating, "Crypto is inevitable. There are countries that are way ahead of us."
This marks a notable change in tone for Waters, who has previously focused on advocating strict regulatory measures for the crypto sector.
The political environment around crypto has evolved recently, and the changing stance among Democrats may have influenced Waters' outlook.
Vice President Kamala Harris has started to adopt a more business-friendly approach, including a cautious acceptance of crypto.
Earlier this month, during a fundraiser, Harris indicated her administration's intent to "encourage innovative technologies like AI and digital assets while protecting our consumers and investors."
Waters' comments were made in response to questions about her current views on the sector in light of Harris's recent position.
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While she maintains her commitment to investor protection, her acknowledgment of crypto's inevitability signals a more open stance: "The crypto companies want support the way they want to have it. We can't do that. There's got to be guardrails so that we protect consumers. But, you know, people are going to have to come to an agreement that yes, we are not afraid of crypto, we're not opposed to crypto, but we are very much aware that investors have to be protected."
Should Democrats regain control of the House in November, Waters is poised to reclaim her position as chair of the Financial Services Committee.
During her time as the ranking member, she has consistently voiced opposition to many of the crypto industry's legislative priorities, including the FIT for the 21st Century Act, which passed the House with 71 votes in May.
Waters criticized the bill, stating it "would deregulate a substantial portion of the crypto industry" and urged fellow Democrats to resist: "Don't be afraid of Big Crypto and stand for everyday investors and consumers."
Despite her past resistance, Waters is now hinting at a potential shift. She referenced international developments in digital currencies, admitting, "I think we may even be behind, as I look worldwide, on digital."
This new openness to dialogue was further underscored earlier this week when she called for a "grand bargain" on stablecoins during a discussion with senior officials from the Securities and Exchange Commission.
What's Next: The evolving landscape around crypto regulation will likely be a key topic at Benzinga's Future of Digital Assets event on Nov. 19, where leaders and policymakers will explore the impact of regulations and global developments on the digital asset market.
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