U.S. Representative Maxine Waters wrote to her Democratic colleagues on November 6, announcing her bid to become the next chair of the House Financial Services Committee. Her agenda includes setting “strict but fair” rules for legitimate crypto businesses and reining in prediction markets and private equity. Fellow Democrat Sean Casten announced his candidacy the day before. The chair will be chosen by a vote of the Democratic caucus. (Previously: Democrats retake Congress; Trump family’s crypto venture WLFI likely to face scrutiny) (Background: Kraken’s Fed “master account” sparks controversy: banks warn of systemic risk as lawmakers press for more details) Key takeaways Maxine Waters announced her bid for chair of the House Financial Services Committee on November 6 Maxine Waters wants “strict but fair” rules for legitimate crypto businesses and to rein in prediction markets Sean Casten announced his candidacy on November 5, with crypto and prediction markets also on his agenda U.S. Representative Maxine Waters wrote to her Democratic colleagues on November 6 (U.S. Eastern Time). In the letter, she formally announced her bid to become the next chair of the House Financial Services Committee. Her agenda includes establishing “strict but fair rules” for “legitimate” crypto businesses and advancing legislation to curb what she calls Trump’s crypto corruption. Maxine Waters is an 88-year-old California Democrat and currently the committee’s ranking member. She has led the committee’s Democrats since 2013 and served as chair when Democrats controlled the House from 2019 to 2023. She was also the first woman and the first Black member of Congress to hold the position. Democrats won control of both the House and Senate in the November 3 midterm elections. Decision Desk HQ projects that Democrats will win 251 House seats and 54 Senate seats, with results still outstanding in some districts. A majority in the House requires 218 seats, so 251 would put Democrats 33 seats above the threshold. The current chair, Republican French Hill, won reelection in Arkansas, but the chairmanship will still pass to a Democrat. The new Congress will take office on January 3, 2027. Campaign letter puts crypto and prediction markets on the agenda In her letter, Maxine Waters pledged to establish “strict but fair rules” for “legitimate” crypto businesses and to rein in prediction markets. According to Bloomberg, she also said she would protect consumers, small businesses, community banks, and the financial system. Maxine Waters also proposed expanding eligibility for Federal Reserve master accounts and reforming the Fed’s operations, from governance to discount-window lending. A master account is an account that allows a financial institution to hold funds and clear payments directly through the Federal Reserve. In April this year, Maxine Waters questioned the Kansas City Federal Reserve’s approval of a master account for crypto exchange Kraken, criticizing the lack of transparency in the approval process. Beyond crypto, Maxine Waters proposed renaming the committee the “Committee on Housing and Financial Services.” She wants to continue work on the bipartisan housing bill passed this summer, the 21st Century ROAD to Housing Act, expand affordable housing programs, and reform mortgage financing. She also wants to eliminate “junk fees” such as overdraft charges and late fees, and restore the Consumer Financial Protection Bureau’s (CFPB) independent funding. According to Bloomberg, Maxine Waters also wants to rein in misconduct by private fund managers, increase transparency and accountability, and bring what she calls “this unaccountable industry” under regulation. She also said she was open to expanding retail investors’ access to private companies and advancing legislation to address the risks AI poses to the financial system and the economy. Maxine Waters voted against FIT21 Maxine Waters has generally taken a cautious stance toward crypto legislation. In May 2024, she voted against FIT21, a Republican-led crypto market structure bill considered by the House. In May 2025, she introduced the Stop TRUMP in Crypto Act. The bill would prohibit the president, vice president, members of Congress, and their families from issuing or promoting digital assets, or profiting from crypto businesses. According to Bloomberg, she has also criticized the CLARITY Act, which stalled in the Senate earlier this year. American Banker noted that Trump holds veto power, so even if Maxine Waters becomes chair, it will be difficult for her to turn strongly partisan legislation into law. Sean Casten sent his campaign letter a day earlier Illinois Democratic Representative Sean Casten sent his campaign letter on November 5, challenging Maxine Waters. Sean Casten is 54 and serving his fourth term. Maxine Waters appointed him vice chair of the committee. In his letter, he said the committee should lower housing and insurance costs, protect consumers from fraud and from risks posed by cryptocurrency and prediction markets, and prevent the next financial crisis. He also called for a “methodical” investigation into Trump’s business ventures and policy actions. Sean Casten and Republican Representative María Elvira Salazar previously introduced a bipartisan bill to crack down on crypto ATM scams targeting older adults. The House Democratic caucus will decide who becomes chair. Roll Call reported that the Democratic Steering and Policy Committee is responsible for committee assignments. The full caucus then selects committee leaders by secret ballot. Among the committee’s Democratic members, everyone except Sean Casten and two others has already signed a joint letter backing Maxine Waters. Sean Casten’s campaign letter offered fewer policy details than Maxine Waters’s, and his chances of winning the chairmanship are also lower. Frequently asked questions How would Maxine Waters regulate cryptocurrency if she becomes chair of the House Financial Services Committee? In her November 6 campaign letter, Maxine Waters pledged to establish “strict but fair” rules for legitimate crypto businesses and rein in prediction markets. In May 2024, she voted against FIT21. How is the chair of the House Financial Services Committee chosen? The House Democratic caucus decides by secret ballot, with the Steering and Policy Committee handling committee assignments. All but three of the committee’s Democratic members, including Sean Casten, have already signed a joint letter backing Maxine Waters. Related coverage (Fortune): After Democrats take the House, Trump’s WLFI could be among the first targets of investigations; even a pardon for Changpeng Zhao may come under scrutiny How bad are these U.S. midterm elections for the crypto industry? Poll: Nearly two-thirds of U.S. voters view cryptocurrency unfavorably, with Democrats the most negative This article, “Democratic Representative Maxine Waters vies to chair House Financial Services Committee: Crypto laws must be ‘strict’!”, was first published by BlockTempo (the most influential blockchain news outlet in the Chinese-speaking world).