Waters, Seeking House Financial Services Gavel, Signals Tougher Oversight of Crypto and Private Equity

"Strict and Fair Rules for Crypto"

Rep. Maxine Waters, a Democrat seeking to become the next chair of the House Financial Services Committee, signaled tougher oversight of the cryptocurrency and private equity industries. At the same time, she indicated she is open to expanding retail investors' access to private companies while tightening rules against unfair business practices.

In a letter to fellow Democrats, Waters announced her bid for the committee chairmanship and outlined those positions, Bloomberg reported on Nov. 6.

Waters said she would establish "strict and fair rules" for legitimate businesses in the cryptocurrency sector. She also pledged safeguards to protect consumers, small businesses, community banks and the financial system. She has previously taken a critical stance on the Clarity Act, which stalled in the Senate earlier this year.

On private equity, Waters said she would rein in problematic behavior by fund managers and increase transparency and accountability. She said she would bring "this unaccountable industry" into the open and subject it to oversight and regulation. Waters also said she would pursue legislation to address risks artificial intelligence could pose to the financial system and the broader economy.

Rep. Sean Casten, a Democrat competing for the same post, also emphasized tougher oversight. In a campaign letter sent on Nov. 5, Casten said he would address emerging risks from cryptocurrency, prediction markets and AI.