PANews reported on October 22nd, according to DL News, that the cryptocurrency crash has become a political issue in the United States. Democrats are warning that the government shutdown could trigger another market disaster, and that the paralysis of federal regulatory agencies has exposed investors to significant risks. Maxine Waters, the top Democrat on the House Financial Services Committee, issued a statement on the 21st day of the shutdown, blaming Republicans. She said that Trump and congressional Republicans are integrating cryptocurrencies into the traditional financial system without an appropriate regulatory framework, amplifying risks and threatening to cause similar crashes to spread more quickly to the traditional financial sector in the future. Following the October 10th market crash, Waters stated that the sell-off cost investors billions of dollars and drove traders into traditional safe-haven assets. Furthermore, the flash crash sparked calls for an investigation into insider trading after analysts discovered a single wallet deposited millions of dollars into the Hyperliquid decentralized exchange shortly before the crash. This wallet established significant leveraged short positions in Bitcoin and Ethereum, allegedly profiting over $150 million after the price crash. Waters called on the SEC and CFTC to conduct a thorough investigation and hold the perpetrators accountable. However, with these institutions effectively stagnant, investors have lost key protections and are "extremely vulnerable to another catastrophic crash."PANews reported on October 22nd, according to DL News, that the cryptocurrency crash has become a political issue in the United States. Democrats are warning that the government shutdown could trigger another market disaster, and that the paralysis of federal regulatory agencies has exposed investors to significant risks. Maxine Waters, the top Democrat on the House Financial Services Committee, issued a statement on the 21st day of the shutdown, blaming Republicans. She said that Trump and congressional Republicans are integrating cryptocurrencies into the traditional financial system without an appropriate regulatory framework, amplifying risks and threatening to cause similar crashes to spread more quickly to the traditional financial sector in the future. Following the October 10th market crash, Waters stated that the sell-off cost investors billions of dollars and drove traders into traditional safe-haven assets. Furthermore, the flash crash sparked calls for an investigation into insider trading after analysts discovered a single wallet deposited millions of dollars into the Hyperliquid decentralized exchange shortly before the crash. This wallet established significant leveraged short positions in Bitcoin and Ethereum, allegedly profiting over $150 million after the price crash. Waters called on the SEC and CFTC to conduct a thorough investigation and hold the perpetrators accountable. However, with these institutions effectively stagnant, investors have lost key protections and are "extremely vulnerable to another catastrophic crash."

Senior US Democrats warn: Trump could cause another "catastrophic crash" in the crypto market

2025/10/22 18:23
2 min read

PANews reported on October 22nd, according to DL News, that the cryptocurrency crash has become a political issue in the United States. Democrats are warning that the government shutdown could trigger another market disaster, and that the paralysis of federal regulatory agencies has exposed investors to significant risks. Maxine Waters, the top Democrat on the House Financial Services Committee, issued a statement on the 21st day of the shutdown, blaming Republicans. She said that Trump and congressional Republicans are integrating cryptocurrencies into the traditional financial system without an appropriate regulatory framework, amplifying risks and threatening to cause similar crashes to spread more quickly to the traditional financial sector in the future. Following the October 10th market crash, Waters stated that the sell-off cost investors billions of dollars and drove traders into traditional safe-haven assets.

Furthermore, the flash crash sparked calls for an investigation into insider trading after analysts discovered a single wallet deposited millions of dollars into the Hyperliquid decentralized exchange shortly before the crash. This wallet established significant leveraged short positions in Bitcoin and Ethereum, allegedly profiting over $150 million after the price crash. Waters called on the SEC and CFTC to conduct a thorough investigation and hold the perpetrators accountable. However, with these institutions effectively stagnant, investors have lost key protections and are "extremely vulnerable to another catastrophic crash."

Market Opportunity
OFFICIAL TRUMP Logo
OFFICIAL TRUMP Price(TRUMP)
$3.274
$3.274$3.274
-0.54%
USD
OFFICIAL TRUMP (TRUMP) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact crypto.news@mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

OpenVPP accused of falsely advertising cooperation with the US government; SEC commissioner clarifies no involvement

OpenVPP accused of falsely advertising cooperation with the US government; SEC commissioner clarifies no involvement

PANews reported on September 17th that on-chain sleuth ZachXBT tweeted that OpenVPP ( $OVPP ) announced this week that it was collaborating with the US government to advance energy tokenization. SEC Commissioner Hester Peirce subsequently responded, stating that the company does not collaborate with or endorse any private crypto projects. The OpenVPP team subsequently hid the response. Several crypto influencers have participated in promoting the project, and the accounts involved have been questioned as typical influencer accounts.
Share
PANews2025/09/17 23:58
Aave DAO to Shut Down 50% of L2s While Doubling Down on GHO

Aave DAO to Shut Down 50% of L2s While Doubling Down on GHO

The post Aave DAO to Shut Down 50% of L2s While Doubling Down on GHO appeared on BitcoinEthereumNews.com. Aave DAO is gearing up for a significant overhaul by shutting down over 50% of underperforming L2 instances. It is also restructuring its governance framework and deploying over $100 million to boost GHO. This could be a pivotal moment that propels Aave back to the forefront of on-chain lending or sparks unprecedented controversy within the DeFi community. Sponsored Sponsored ACI Proposes Shutting Down 50% of L2s The “State of the Union” report by the Aave Chan Initiative (ACI) paints a candid picture. After a turbulent period in the DeFi market and internal challenges, Aave (AAVE) now leads in key metrics: TVL, revenue, market share, and borrowing volume. Aave’s annual revenue of $130 million surpasses the combined cash reserves of its competitors. Tokenomics improvements and the AAVE token buyback program have also contributed to the ecosystem’s growth. Aave global metrics. Source: Aave However, the ACI’s report also highlights several pain points. First, regarding the Layer-2 (L2) strategy. While Aave’s L2 strategy was once a key driver of success, it is no longer fit for purpose. Over half of Aave’s instances on L2s and alt-L1s are not economically viable. Based on year-to-date data, over 86.6% of Aave’s revenue comes from the mainnet, indicating that everything else is a side quest. On this basis, ACI proposes closing underperforming networks. The DAO should invest in key networks with significant differentiators. Second, ACI is pushing for a complete overhaul of the “friendly fork” framework, as most have been unimpressive regarding TVL and revenue. In some cases, attackers have exploited them to Aave’s detriment, as seen with Spark. Sponsored Sponsored “The friendly fork model had a good intention but bad execution where the DAO was too friendly towards these forks, allowing the DAO only little upside,” the report states. Third, the instance model, once a smart…
Share
BitcoinEthereumNews2025/09/18 02:28
Banking Regulator Floats New Stablecoin Yield Rules—Do They Hurt Coinbase?

Banking Regulator Floats New Stablecoin Yield Rules—Do They Hurt Coinbase?

The post Banking Regulator Floats New Stablecoin Yield Rules—Do They Hurt Coinbase? appeared on BitcoinEthereumNews.com. In brief The OCC proposed rules that would
Share
BitcoinEthereumNews2026/03/01 00:34