Rep. Jake Auchincloss (D-MA) took to the House floor on Wednesday to accuse fellow Democrats in the Biden administration of “blockchain grifting.”
In a pointed speech, he took aim at both the Commerce Secretary and the President, alleging conflicts of interest tied to cryptocurrency.
His attack came during debate on the Deploying American Blockchains Act, a bill he said he now opposes—not because of the policy, but purely due to who is running the Department of Commerce.
Shift in Support Linked to Leadership
“I actually supported the legislation during the last administration,” Auchincloss said. “We had a Secretary of Commerce then who was one of the finest public servants I’ve worked with.”
His tone shifted when referring to the current Commerce Secretary, whom Auchincloss accused of using his position to promote personal and familial financial interests.
Allegations of Conflict Involving Tether
Auchincloss alleged that the Secretary had strong ties to Tether, a leading stablecoin in the crypto sector. He said the Secretary had spent four decades as CEO and Chairman of Cantor Fitzgerald, which he described as a key investor in Tether.
“He is using his and his family’s weight to pitch Tether to foreign governments across the Middle East,” Auchincloss told lawmakers. “Turning public policy into personal profit.”
He claimed the Secretary’s son is involved in crypto deals overseas, further compounding the appearance of impropriety.
Warning About U.S. Credibility
Auchincloss emphasized that the U.S. government should remain neutral when it comes to cryptocurrency.
“We should not be a bull or a bear on crypto,” he said. “We should ensure market integrity and the amplification of the U.S. dollar as the world’s reserve currency.”
But, he argued, such impartiality is impossible when senior officials appear entangled in financial interests connected to the very technology they are tasked with regulating.
Reference to Trump Memecoin
In a closing remark, Auchincloss also criticized former President Donald Trump, referring to the promotion of a Trump-themed memecoin as an example of selling political influence through digital assets.
“We cannot allow this administration to continue to grift off of blockchain,” he said, before yielding the remainder of his time.
No Direct Response Yet
As of publication, the Department of Commerce has not responded publicly to Auchincloss’s remarks. The White House also declined immediate comment.
Despite Auchincloss’s fiery condemnation, the Deploying American Blockchains Act sailed through on a simple voice vote, meaning his protest wasn’t formally recorded as opposition.
The bill now hands the Commerce Department more power to champion U.S. blockchain innovation. The whole episode highlights a growing worry in Washington: how can the country regulate powerful new technologies when the public’s trust in the regulators themselves is starting to fray?
