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U.S. House Hearing Marks Progress Toward Crypto Market-Structure Bill

The U.S. House Financial Services Committee checked the next box in moving toward what Representative Bryan Steil referred to as the "second half" of President Donald Trump`s crypto agenda: a bill to set U.S. crypto market rules for a fully regulated domestic industry. Steil, the Republican chairman of the panel`s crypto subcommittee, said that the first half of Trump`s goal is well underway — Congress` stablecoin legislation that`s already advanced through committees in both the House and Senate — so a Wednesday hearing explored the other long-awaited digital assets bill to establish the structure of crypto markets. Such hearings represent a rung on such an effort`s climb through Congress. Representative French Hill, the Arkansas Republican who runs the overall committee, indicated that those working on the bill are closer to releasing a successor to the Financial Innovation and Technology for the 21st Century Act (FIT21), the House legislation that passed last year but failed to progress through the Senate. "The committee has engaged with a wide range of stakeholders, from government agencies to leaders in the ecosystem to identify ways market structure legislation can be further refined and strengthened," he said during the hearing. "We`re actively working to release a legislative discussion draft that reflects that feedback from members and market participants." Democrats on the committee returned repeatedly to the crypto business activity of Trump and his family, questioning industry lawyers about whether it represents a conflict of interest. Representative Maxine Waters, the committee`s ranking Democrat, accused the panel of trying to make Trump "the king of crypto by passing legislation that lets him corner the market on stablecoins, kick George Washington off the dollar and make his own stablecoin." The witnesses mostly declined to engage on Trump, though a consumer advocate testifying on Wednesday, Alexandra Thornton, a senior director at the Center for American Progress, noted "there have been a number of things that the Trump administration has done that have favored crypto, and they include many that you mentioned, but also letting go of many enforcement staff, dropping many cases against crypto." The lawmakers also drilled down on the proper roles of the Securities and Exchange Commission and the Commodity Futures Trading Commission in future crypto oversight, and how Congress should define which regulatory buckets should handle the different digital assets. In recent years, the SEC`s interpretation of how to use securities law to identify which crypto tokens are securities left the industry in legal confusion and mired in enforcement disputes, despite some early guidance from the agency on how to negotiate legal standards. "Market participants have still found it challenging to apply," said Tiffany Smith, who works with crypto clients at law firm WilmerHale. She added that the definitions become even more complicated when the bulk of crypto transactions happen on secondary markets, such as on crypto exchanges. "Regulatory clarity is needed," she said. Read More: U.S. House Stablecoin Bill Poised to Go Public, Lawmaker Atop Crypto Panel Says CoinOtag

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WLFI-Linked Wallet Offloads Ethereum as Losses Mount Amid Falling ETH Price

World Liberty Financial (WLFI) – the DeFi venture tied to US President Donald Trump – appears to be offloading Ethereum amid increasing losses. According to on-chain data tracker Lookonchain, a wallet linked to WLFI sold 5,471 ETH for approximately $8 million on April 9 at a price of $1,465. This sale marks a major loss for the firm, which had previously spent around $210 million to acquire 67,498 ETH at an average price of $3,259 per coin. At the current price of Ethereum, WLFI is facing an unrealized loss of roughly $125 million. The sale could be a response to ETH’s recent price drop, which has seen it plunge below the $1,500 mark. Falling ETH Price CryptoPotato had previously reported that WLFI’s portfolio is heavily weighted in Ethereum, which makes up 65% of its holdings. Hence, the altcoin’s depreciation significantly impacted the project’s overall losses. As such, the decision to offload part of its holdings could signal a shift in strategy as it seeks to mitigate further damage from the falling ETH prices. Over the past 24 hours, Ethereum has lost more than 8%, briefly dropping to a low of $1,386 amidst a broader market downturn. The price has recovered modestly as the crypto was trading near $1,447 at the time of writing. Last month, WLFI revealed its plans to launch USD1, a stablecoin designed to be redeemable 1:1 for the US dollar. It will be entirely backed by short-term US government treasuries, US dollar deposits, and other cash equivalents. Initially, the USD1 tokens will be minted on the Ethereum (ETH) and Binance Smart Chain (BSC) blockchains, with future plans to expand to other networks. Each token will maintain a value of $1. Meanwhile, its backing will be supported by a reserve portfolio audited regularly by an independent third-party firm. World Liberty Financial WLFI was introduced by Trump in September 2024. The main objective was to streamline access to financial services by cutting out intermediaries. Later, Justin Sun, the founder of Tron, came on board as an advisor to the platform. The Trump family reportedly seized majority control of WLFI. The family’s company, DT Marks DeFi LLC, acquired a 60% stake in the platform in January 2025 through a new holding company, WLF Holdco LLC. As a result, two of WLFI’s co-founders, Zak Folkman and Chase Herro, were replaced by individuals associated with the Trump family. Under the new ownership structure, the Trump family is set to control 60% of the venture’s operating profits and 75% of the revenue from token sales. The post WLFI-Linked Wallet Offloads Ethereum as Losses Mount Amid Falling ETH Price appeared first on CryptoPotato . CoinOtag