Maxine Waters warns federal shutdown raises risk of repeat meltdowns.Oversight agencies are paralysed, she says.<\/p>\n
The crypto crash has become political. <\/p>\n
Democrats are warning that the ongoing government shutdown is setting the stage for another market disaster, arguing that paralysis at federal oversight agencies leaves American investors dangerously exposed.<\/p>\n
Representative Maxine Waters, the top Democrat on the House Financial Services Committee, made the accusations in a statement<\/a> marking the 21st day of the shutdown, which she blamed on the Republicans. <\/p>\n \u201cThese risks are only amplified as Trump and Republicans in Congress work to integrate crypto into the traditional financial system without first establishing the proper guardrails \u2014 increasing the likelihood of future crashes just like this one that could more rapidly spread to traditional finance,\u201d Waters wrote.<\/p>\n The Trump White House denies<\/a> responsibility and blames Democrats for the government closure. <\/p>\n Waters\u2019 warning follows the October 10 market meltdown<\/a>, when cryptocurrencies and tech stocks plunged in value after US President Donald Trump threatened 100% tariffs on Chinese imports and announced new export controls.<\/p>\n According to Waters, the selloff \u201cleft investors with billions of dollars in losses\u201d as traders fled digital assets for traditional safe havens such as US Treasury bonds and gold. Bitcoin plunged 14.6%, Ethereum by 21%, Dogecoin sank more than 50%, and the $TRUMP coin \u2014 a memecoin associated with Trump supporters \u2014 dumped 63% at its lowest point.<\/p>\n Since taking office, Trump has introduced a wave of pro-crypto policies. His appointments in key government positions, such as the Securities and Exchange Commission, have followed suit<\/a> with efforts to rapidly create regulations for digital assets.<\/p>\n Democrats have used Trump\u2019s stance to beat the president with corruption allegations, given his family\u2019s sprawling crypto empire<\/a>. They say that his family has benefitted from his policies. <\/p>\n