U.S. Representative Stephen Lynch has voiced strong skepticism about the legitimacy of cryptocurrencies, stating that "there is no legitimate use case for crypto". This stance aligns with his long-standing critical views on the crypto industry.

Lynch, who is the Ranking Member of the Subcommittee on Digital Assets, and Maxine Waters, the top Democrat on the House Financial Services Committee, recently announced "Anti-Crypto Corruption Week". During this week, they plan to lead Democrats in opposing Republican efforts to push through crypto legislation, including the "CLARITY Act," the "GENIUS Act," and a bill that would ban a central bank digital currency (CBDC). They believe these bills could enable massive crypto fraud and legitimize what they see as President Trump's crypto corruption, which they claim has already generated $1.2 billion for him.

Lynch has expressed concerns that his Republican colleagues are prioritizing the interests of the crypto industry while overlooking the potential for abuse, particularly regarding President Trump's acceptance of investments in his family's crypto business from foreign governments, creating conflicts of interest. He argues that the "CLARITY Act" and the "GENIUS Act" would not only facilitate President Trump's alleged corruption but also expose financial stability, national security, and consumer protections to greater risk. Additionally, he is critical of the "Anti-CBDC Surveillance State Act," which he believes would hinder U.S. government research while giving China an advantage in new technology.

Lynch has emphasized the volatility and risk associated with crypto products, along with the lack of investor protections. He fears that these factors could have detrimental effects on Americans' financial well-being and undermine traditional financial markets.

Lynch's skepticism towards crypto is not new. In the past, he voted against advancing the "Financial Innovation and Technology for the 21st Century Act" out of the House Financial Services Committee, expressing concerns that it would strip consumer and investor protections, make reckless changes to securities laws, and inject confusion into the regulatory framework.

Despite his current stance, it is worth noting that in 2021, Lynch co-sponsored a bill called the "Eliminate Barriers to Innovation Act," which aimed to clarify cryptocurrency regulations. The bill sought to create a working group composed of industry experts and representatives from the SEC and CFTC to evaluate the existing legal and regulatory framework around digital assets. The goal was to provide clear guidelines on whether a cryptocurrency should be classified as a security or a commodity.