U.S. crypto regulation may face a hardline shift, as Waters announces a bid for House Financial Services Committee chair, with plans to step up industry scrutiny.

According to Bloomberg, U.S. Representative Maxine Waters, a California Democrat, announced on November 6 that she is running for Chair of the U.S. House Financial Services Committee. If elected, she plans to ramp up oversight of the Trump administration and the financial services industry, with a focus on private equity, artificial intelligence (AI), housing affordability, and digital assets. Waters said she will push for regulatory reforms targeting the private equity industry, expand oversight of relevant firms, and explore expanding opportunities for retail investors to participate in private companies. Additionally, she plans to advance the financial system’s adaptation to AI development and establish strict yet fair regulatory rules for compliant crypto firms. Waters’ overall stance toward the crypto industry is cautious, with an emphasis on investor protection and federal regulation. She previously opposed the Republican-backed FIT21 Crypto Market Structure Act, criticized the Trump administration and his family’s involvement in crypto businesses for alleged conflicts of interest, and championed the Crypto Investor and Consumer Rights Act, which calls for strengthened regulation in areas such as platform custody, reserve proof, and customer asset protection. However, she does not oppose crypto innovation outright, having publicly voiced support for advancing the technology on the condition of enhanced investor protection. Another Democratic representative, Sean Casten, is also vying for the committee’s chairmanship; his policy agenda also covers emerging risks from crypto, prediction markets, and AI, and emphasizes reviewing Trump’s ties to the crypto industry. The final pick is expected to be determined in the coming weeks.