Maxine Waters

Ms. WATERS

Ms. WATERS. Mr. Speaker, as I am challenging my Republicans on the opposite side of the aisle, let's talk about socialism. Let's not try to deflect from what you know and understand that you want to hide. Before I go into much more, I yield 5 minutes to the gentleman from Maryland (Mr. Raskin), who is the ranking member of the Judiciary Committee, to tell them what socialism is really all about.

Ms. WATERS. Mr. Speaker, I would just like to say that the Republicans are confusing socialism with despotism or authoritarianism. Again, Republicans are confusing socialism with despotism or authoritarianism. Despots try to control the press, education, and the system of justice. Despots send the military against their own citizens. Despots try to control the economy. Despots arrest their own citizens, including children, in the middle of the night. Let me just say that the young lady talked about working hard, and socialism, you know, robs families of what they have worked hard for and what they have earned. Well, I want to ask you: What is this administration doing when it takes a 10 percent equity stake in Intel, 15 percent equity stake in MP Materials, a 10 percent equity stake in Lithium America, a 10 percent equity stake in Trilogy Metals, and a ``golden share'' in U.S. Steel Corporation? What is that? Now, the Republicans have tried to confuse you on what socialism is and even called it communism-lite. That is an absolute distraction from what we are discussing here today. Communism is communism. Socialism is socialism. This is a government run by someone who is not taking into consideration the facts and the harm and the threat that they are doing to education, the attempt to take over law firms, the attempt to tell some of the finest universities in this country what they can teach and what they cannot teach, and I repeat, giving away our money to a country, $40 billion, at a time when that money is so desperately needed in this government. We can talk about this all day, but, absolutely, you are looking silly when you are trying to talk about communism-lite or you are trying to describe socialism when you don't know what it is. So I am saying that I denounce this administration, Trump's family, and all that is going on that is undermining our democracy. We are about a democracy that must be protected, that must be fought for. We on this side of the aisle are fighting every day to make sure there is justice and there is equality and that our government is not undermining democracy and calling it socialism, calling it communism, calling it whatever you think you can use to deflect from what is going on. We are in a terrible time in this government with a President of the United States and a family who is enriching themselves on our backs. Yes, I fought hard to keep the President of the United States, the Cabinet, and the Members of Congress from owning cryptocurrency, but unfortunately, they are enriching themselves every day. I think the President has enriched himself by maybe $1 trillion already in the limited time that he has been the President of the United States. So don't come here talking about the dangers of socialism. You better come here and talk about what you are going to do to strengthen our democracy, how you are going to make sure that we have an education system for all the children, rather than an education system that is being torn apart by the President of the United States. Let's talk about how people are sleeping on the street, homeless, when we are cutting Section 8 programs in housing. We can go on about this all day. I will reserve the balance of my time so I can rest a bit. Let them say what they want to say, so I can come back and tell them what they need to hear. Mr. Speaker, I reserve the balance of my time.

Ms. WATERS. Mr. Speaker, I reserve the balance of my time.

Ms. WATERS. Mr. Speaker, I move to take the words down.

Ms. WATERS. Mr. Speaker, I rise to take down her words.

Ms. WATERS. Mr. Speaker, I yield myself the balance of my time. Mr. Speaker, I thank Ms. Salazar for withdrawing her words, and let's get on with this discussion about socialism. Instead of legislating and doing the work to tackle real problems-- Americans face the skyrocketing cost of groceries, rising rents, and mortgage payments. Republicans have always opposed Medicaid and Medicare. They have been undermining it since day one, and they do not want to fix the catastrophic economic policies of this administration. Mr. Speaker, I want you to know that this administration is responsible for the situation that we find ourselves in with this failing economy. The Trump administration must take the credit for what is happening with the loss of food for our children, for a limited period of time, before we fought to get it back. Mr. Speaker, I haven't finished, but I vote ``no,'' and I want you to vote ``no'' because this is absolutely unnecessary. Mr. Speaker, I yield back the balance of my time.

Ms. WATERS. Mr. Speaker, on that I demand the yeas and nays.

Ms. WATERS

Ms. WATERS. Madam Chair, the National Defense Authorization Act often includes provisions that have nothing to do with our national defense, and that is not a bad thing. In the past, members of my committee have passed reforms to the Committee on Foreign Investment in the United States, updated our anti-money-laundering bills, and made numerous changes to securities and consumer protection laws on the NDAA. This year, Speaker Johnson cut a deal with his Freedom Caucus members to insert a ban on the U.S. from researching how to create a digital dollar, knowing that Democrats overwhelmingly rejected it in July. Even though Speaker Johnson included this provision, he blocked all of my committee members' financial services amendments from consideration in this bill. What did he block? I offered an amendment to restore funding to the Consumer Financial Protection Bureau that Trump unlawfully cut. I also offered language to protect workers, small businesses, and small community banks and credit unions by reforming deposit insurance. Another amendment that the Republicans are blocking would increase funding for affordable housing. Finally, I tried to attach my bill to stop Trump family's crypto corruption, which now exceeds $7.7 billion. Republicans won't bring these ideas to the floor, probably because Republicans are scared that they would pass. It is why Republicans also jammed in their ban of a digital dollar. They know that most Americans reject what they are doing. For all of these reasons and many more, I urge a ``no'' vote on H.R. 3838.

Ms. WATERS

Ms. WATERS. Mr. Speaker, the United States Conference on AIDS is taking place right now in Washington, D.C., and I rise to honor Paul Kawata, who is retiring after 37 years of extraordinary service as executive director of the National Minority AIDS Council, making him the longest serving leader of a national HIV/AIDS organization in the United States. Paul's vision transformed NMAC into a nationally recognized force for racial justice and health equity in the fight against HIV/AIDS and ensured that LGBTQ people, people living with HIV, and communities of color were visible in this epidemic. Paul was a founding member of the Federal AIDS Policy Partnership, helped to drive the creation of the national HIV/AIDS strategy, and worked with me when I created the Minority AIDS Initiative back in 1998. A proud Japanese American, Paul Kawata's legacy is not only found in the landmark policies he shaped, but in the thousands of lives he touched, the leaders he mentored, and the communities he uplifted across the Nation. Mr. Speaker, I congratulate Paul Kawata.

Ms. WATERS

Ms. WATERS. Mr. Speaker, I rise today in support of Lisa Cook. She is a member of the Board of Governors of the Federal Reserve. I rise to support her because there is an attempt to fire her if she does not retire or resign. This attempt that has been made is because the President of the United States wants to take over the Federal Reserve. This is our central bank with responsibility for determining the interest rates, short-term interest rates. We cannot allow the President of the United States to own, dictate, and tell the Federal Reserve what they can and cannot do. If he gets rid of Lisa Cook, he will have control of the central bank. What he will do is insist on interest rates going down, but what people do not understand is this will cause inflation to rise. This President has interfered with law firms and sued them. He has interfered with our educational institutions, threatening their funding if they do not do what they are told. This now is a wannabe what? Taking over the central bank in order to determine the entire economy. Mr. Speaker, I ask my colleagues to join with me and support Lisa Cook and Chair Powell at the central bank.

Ms. WATERS

Ms. WATERS. Madam Speaker, I yield myself such time as I may consume. Madam Speaker, I rise in support of H.R. 1549, the China Financial Threat Mitigation Act, sponsored by Mr. Williams of Texas and Mr. Gottheimer of New Jersey. The People's Republic of China continues to pose a significant challenge to America's economy and financial system. This doesn't mean that China is simply an economic competitor. Rather, China has taken an aggressive adversarial posture toward American influence and power globally, leveraging its growing economic strength to do so. To address concerns raised by China's conduct in this regard, American policymakers, including Members of Congress, need accurate data about the potential risks posed. This includes information about trade, both legal and illegal investments, demographics, subsidies for domestic industries, and demand for oil and economic growth. Unfortunately, despite these needs, the economic data available directly from China is generally limited and unreliable. Even China's gross domestic product figures are regarded as questionable. Madam Speaker, this bill asks for a detailed study on these issues. The bill would also require recommendations for additional actions to strengthen international cooperation to mitigate risks and protect U.S. interests. The House previously passed this bill four times in the last three Congresses, and I hope we can finally pass it into law. Madam Speaker, I urge my colleagues to support this bill, and I reserve the balance of my time.

Ms. WATERS. Madam Speaker, I yield myself the balance of my time. Madam Speaker, I thank Representative Williams of Texas and Representative Gottheimer for sponsoring this bill. Their bipartisan work resulted in a unanimous vote during our Committee on Financial Services markup earlier this year, reflecting our shared concerns about the aggressive economic and commercial activities of the Government of the People's Republic of China. Madam Speaker, I urge my colleagues to support this bill, and I yield back the balance of my time.

Ms. WATERS

Ms. WATERS. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, in both this Congress and last, I have been particularly outspoken about the risks of retail investors investing in private securities. Amongst other things, private securities lack sufficient transparency, have longer lock-up periods, and are much more volatile and less liquid than their public counterparts. It is critical that anyone who invests in these risky assets have sufficient knowledge of those risks. Currently, companies, or the brokers they hire, can only solicit these ``investment opportunities'' to individuals who have been deemed to be accredited investors. This definition is currently based on a person's income and net worth, meaning only those making a certain amount of money or possessing a big enough bank account have access to them. Anyone can tell you that just because you have a lot of money, that doesn't make you knowledgeable about the markets. Knowledge is the key here, and the definition needs to be revised to center around this core concept of knowledge and expertise. The committee has heard from investors who want to invest their own money in some of these risky and illiquid investments and don't want to be barred from investing just because they don't meet the wealth or income tests. The Equal Opportunity for All Investors Act addresses this problem by allowing an individual to qualify as an accredited investor if they pass an exam that ensures they are properly versed in the risks of investing in the private markets. With this change, ordinary investors who want to invest in private securities can now do so, assuming they pass the test, which would establish that they are keenly aware of the specific pitfalls related to high-risk and illiquid securities, as well as the conflicts of interest presented when financial professionals try to sell them these products. Last year, committee Democrats worked with Former Chairman McHenry and my colleague Mr. Flood to ensure that this test contained specific, robust elements, elements that the Republican witnesses at previous Financial Services hearings talked about when discussing how they teach and mentor their budding investors. I am so glad that the Financial Services Committee agreed to make the test available free of charge to anyone who is willing and able to go through the rigor. Finally, I thank Mr. Flood, my colleague from across the aisle, for working with the committee Democrats on a bill that ensures that the SEC is appropriately overseeing this exam process. I urge my colleagues to vote ``yes'' on this bill, and I reserve the balance of my time.

Ms. WATERS. Mr. Speaker, I yield 2 minutes to the gentlewoman from Delaware, (Ms. McBride.)

Ms. WATERS. Mr. Speaker, I yield myself the balance of my time. Compared to investing in publicly traded securities, private securities contain lots of risks. They are less liquid, harder to value, and are more volatile than their public counterparts. It is, therefore, essential that anyone investing in these products fully understand the risks involved, just as prospective drivers must pass a written test displaying they understand the rules and dangers of the road before they are given access to a car. This bill puts that commonsense principle into practice by creating an SEC-administered test investors can take if they want to invest in private securities. In doing so, we adequately balance investor protection while providing folks with sufficient freedom to do what they please with their hard-earned dollars. I urge my colleagues to support this bill, and I yield back the balance of my time.

Ms. WATERS

Ms. WATERS. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, Mr. Meeks' bill closes documented gaps around multiclass governance structures. Multiclass governance structures are those where corporate insiders or beneficial owners retain an outsized amount of voting power relative to their shares. These structures, while they may add value, pose significant risk, making transparency ever more important for investors. Specifically, these structures pose significant risks for investors, including limiting investors' ability to influence management, direct strategy, and hold misaligned boards accountable. Under current rules, the difference between a corporate insider's voting power and their ownership interest, regardless of how large that gap may be, is often disclosed in ways that are difficult for an ordinary investor to comprehend. Accordingly, the SEC Investor Advisory Committee recommended that the Commission amend its rules to ensure that this gap is better identified and quantified for investors via disclosed ratio. This commonsense bill adopts this recommendation to ensure that investors have the clearest information available to make the best decisions for themselves. This bill is supported by the Council of Institutional Investors, whose members manage trillions in working families' assets. Mr. Speaker, I urge my colleagues to vote ``yes'' on this bill, and I reserve the balance of my time.

Ms. WATERS. Mr. Speaker, I yield 3 minutes to the gentleman from New York (Mr. Meeks), ranking member of the House Committee on Foreign Affairs and the sponsor of this legislation.

Ms. WATERS. Mr. Speaker, I yield myself the balance of my time. Mr. Speaker, Mr. Meeks' bill clarifies for investors the truth around multiclass shares--specifically, the difference between a corporate insider's ownership interests versus their true voting power. These two things are generally disclosed in ways that are hard for everyday investors to understand. This bill solves that problem by ensuring that this gap is quantified for investors via a clearly disclosed ratio, as was recommended by the SEC Investor Advisory Committee. Mr. Speaker, I urge my colleagues to support this bill, and I yield back the balance of my time.

Ms. WATERS

Ms. WATERS. Mr. Speaker, I yield myself such time as I may consume. I rise in support of H.R. 2384, the Financial Technology Protection Act sponsored by Representative Nunn and Representative Himes. This bill seeks to establish the Independent Financial Technology Working Group to Combat Terrorism and Illicit Financing, and for other purposes. This group is made up of both Federal agencies, companies dealing with financial technology, and companies that engage in researching the impact of financial technologies in global markets. It will be tasked with evaluating emerging financial technologies, including digital assets, to assess their potential use in combating terrorism and illicit activities. It will conduct research on how bad actors may exploit these technologies and recommend legal and regulatory improvements to Congress and relevant agencies. Additionally, the working group will develop a strategy to address sanctions, evasion, and other illicit finance concerns. The bill mandates that the group issue an annual report for 4 years providing updates on its findings and recommendations. Why is this needed? We know that Russia has used crypto exchanges and alternative payment platforms to try to bypass the sanctions imposed after its brutal and unlawful invasion of Ukraine. Hamas and other terrorist groups have turned to cryptocurrencies to funnel resources toward violent operations against innocent civilians as was exposed in the investigation following the violent October 7 attacks on Israel. North Korean hackers, operating as arms of the regime, have stolen billions of dollars in cryptocurrency through cyberattacks, laundering those funds to bankroll their illegal weapons programs and bypass international sanctions. These are not hypothetical risks. These are real, ongoing threats to our national and global security. Mr. Speaker, I urge my colleagues to support this bill, and I reserve the balance of my time.

Ms. WATERS. Mr. Speaker, I yield myself the balance of my time to close. Mr. Speaker, cybercriminal syndicates, supported by North Korea and rogue states like Russia, are already exploiting financial technologies to evade sanctions, fund war and terrorism, and destabilize democracies. Ignoring these threats is not an option. This working group is an initial robust approach to gain an understanding of how to address these terrorism threats and prepare to meet and predict them. I thank Representatives Nunn and Himes for introducing this bill, and I, again, urge my colleagues to support it. Mr. Speaker, I yield back the balance of my time.

Ms. WATERS

Ms. WATERS. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, this bill requires the SEC to study the costs encountered by small- and medium-sized companies when undertaking the initial public offering of their securities to the public, otherwise known as IPO, as well as certain other offerings that are exempt from SEC registration. When going public, companies tend to hire underwriters, like investment banks, and other professionals, like attorneys and accountants, to help prepare the IPO. Underwriters serving as intermediaries between companies and prospective investors typically receive a set percentage of the IPO price as compensation for their work. Large companies have in recent years been able to negotiate lower percentages for this process, which reduces their overall fee. At the same time, smaller companies have continued to pay the same historic percentage for this service. Simply put, this bill sheds light on how much small- and medium-sized companies are paying for their underwriting fees, which will allow these companies to negotiate lower prices. Mr. Speaker, I urge all of my colleagues to support my friend from Connecticut (Mr. Himes) commonsense measure. I reserve the balance of my time.

Ms. WATERS. Mr. Speaker, I yield 3 minutes to the gentleman from Connecticut (Mr. Himes), the ranking member of the Permanent Select Committee on Intelligence and the sponsor of this bill.

Ms. WATERS. Mr. Speaker, I yield myself the balance of my time to close. I support Mr. Himes' bill, which will shed light on how much small- and medium-sized companies are paying for their underwriting fees to go public. I hope it will finally put pressure on the SEC to address this important issue for smaller companies. Mr. Speaker, I again urge my colleagues to support this bill, and I yield back the balance of my time.

Ms. WATERS

Ms. WATERS. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise in support of my bill, H.R. 1764, the Aligning SEC Regulations for the World Bank's International Development Act. The International Development Association, IDA, is an example of both the value of our multilateral institutions and America's leadership in these organizations. The IDA is the World Bank's lending arm, and it is one of the most effective tools we have to combat poverty and instability worldwide. The IDA offers grants and low-cost or no-cost lending to help the poorest nations to invest in their futures, improve the lives of their citizens, and create more prosperous communities for the long term. The United States, as the largest donor to the IDA, helps to direct where and how these funds are used. My bill would exempt IDA securities from Securities and Exchange Commission regulations, just as other World Bank arms have been exempt for decades. This ensures that the IDA can continue raising capital efficiently, allowing it to direct resources that are needed the most. This is needed because in April 2018, the IDA began issuing securities on the bond market which are also distributed in the United States. These securities are not exempted from the SEC's registration and regulatory framework. Congress passed legislation in 1945 and 1955, exempting other arms of the World Bank, including the International Bank for Reconstruction and Development and the International Finance Corporation, from SEC's regulations. Importantly, this gave the SEC the ability to recall these exemptions if the SEC finds that they are harmful to U.S. investors. Moreover, many other multilateral development banks of which the U.S. is a member are exempt from the SEC regulations. SEC exemptions for these securities are warranted as they are backed by the commitments, or equities, of the largest economies of the world including the United States. These securities tend to be AAA rated which is the highest investment grade, making them safe investments for all investors. Harmonizing the exemption regime available for MDBs with that of the IDA would enhance the IDA's ability to raise capital in the United States without weakening investor protection. In turn, it will be able to use these proceeds to provide increased funding for the world's poorest countries. Importantly, too, the bill retains the SEC's ability to revoke these exemptions should it find them harmful to U.S. investors. One additional but important note is this bill comes to the floor as we await the 6-month review mandated by Donald Trump's February 4 executive order directing the Secretary of State to determine in which international organizations the U.S. should continue or from which it should withdraw. Inexplicably, that includes World Bank among other international financial institutions. The United States has long been a leader in IFIs like the World Bank. Our leadership in these institutions provides us with a strong voice to improve global economic stability, decrease poverty, and boost prosperity. Through our membership, we advocate for high standards, push for transparency, and drive economic reforms that benefit not only developing nations but our own national security, too. It is wrong, even unconscionable, that Donald Trump would put America's leadership in question. It is the kind of thing that only one beholden to Russia and China would do. Mr. Speaker, I urge my Republican colleagues to speak out against the President's suggestion that we retreat from the world stage and loudly oppose any outcome of this review that will harm America's economic leadership across the globe. Mr. Speaker, I urge my colleagues to support this bill, and I reserve the balance of my time.

Ms. WATERS. Mr. Speaker, I yield myself the balance of my time. Mr. Speaker, this bill simply exempts IDA securities from SEC regulations, aligning with other World Bank arms which have been exempt for decades. By making IDA securities equal to similar funds, the World Bank will have additional funds that can be applied to its mission to help the poorest of nations. The United States has long been a leader in the international financial institutions, and this is one way that we can protect our leadership and stretch the value of our contributions to the World Bank. Mr. Speaker, I urge my colleagues to support this bill, and I yield back the balance of my time.