U.S. Congressman Brad Sherman has condemned President Donald Trump’s decision to sign the nation’s first federal stablecoin legislation into law, calling it a “reckless endorsement” of an industry he believes poses major financial risks.
The California Democrat, known for his long-standing skepticism of cryptocurrencies, didn’t hold back as he also criticized fellow Democrats who supported the bill, accusing them of turning a blind eye to what he sees as the dangers of digital assets.
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The new law, which marks a historic moment in the regulation of digital currencies, sets a federal framework for the issuance and oversight of stablecoins — digital tokens pegged to the value of fiat currencies like the U.S. dollar.
It aims to bring clarity to a fast-growing sector that has long operated in a legal gray area, while giving regulators tools to oversee its operations.
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But Sherman argues that legitimizing stablecoins only opens the door wider to what he calls the “crypto casino,” where speculative trading and financial manipulation thrive. He warned that the bill could weaken consumer protections and financial safeguards that have been cornerstones of the traditional banking system.
“President Trump just handed Wall Street gamblers and crypto lobbyists exactly what they wanted,” Sherman said in a statement. “Stablecoins are not stable, and they’re not safe. This bill gives crypto a patina of legitimacy that it has not earned.”
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Sherman also expressed disappointment with members of his own party who supported the bill, saying they had been “seduced by tech hype and campaign donations.” He reiterated his call for tighter restrictions on cryptocurrencies, which he argues are too often used for illicit activities, tax evasion, and market manipulation.
President Trump’s decision to back the stablecoin legislation is seen by many as part of a broader push to position the U.S. as a leader in financial innovation, especially as countries like China and the EU race ahead with their own digital currency initiatives. Supporters of the bill argue that regulating stablecoins will bring transparency, consumer protections, and economic benefits to the growing digital finance ecosystem.
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