Democratic Party U.S. House Committee On, Financial Services were handed a memo instructing them to back the party’s position on crypto regulation moments before the commencement of the hearings on May 10. According to the party’s leaked memo, Democrats The committee was expected to indicate the Republican Party’s lack of interest in protecting investors. The The memo stated that the U.S. Securities Exchange Commission should be allowed “continue to lead the regulation of the U.S. crypto market.”
A leaked memo was shared by Eleanor TerrettA journalist with Fox Business, Democratic Party Members of the U.S. House Committee On, Financial Services were given instructions to bAck the party’s position on crypto regulation when the committee met on May 10. Those who claimed to have received the memo saying this were Democrat Committee members before the start the hearings.
The memo that was leaked and shared shows the following: Democrats The committee was expected to reinforce six key messages throughout the hearings. The first of these messages is the party’s argument that Republicans The committee is hell-bent to “carving out space for the Commodities Futures Trading Commission (CFTC) in crypto.” Doing This memo meant that Republicans Not only do they undermine the SEC; but, they also display a lack interest in “protecting investors and consumers.”
The Second and third claims of messages Republicans Committee members have no interest to prevent an economic disaster for the U.S., if debt ceilings are not raised. Republicans’ only interest is passing digital asset laws which neither the Biden Adminstration Investors nor the public have requested this.
The U.S. government has been hardening its stance against crypto since 2023. The chairman of the U.S. Securities Exchange Commission Gary GenslerThe administration has accused crypto entities of offering securities to investors without the required approval.
The SEC’s unclear definition of what constitutes a security as well as the clampdown on crypto entities has so far forced entities like the crypto exchange Coinbase To consider moving to jurisdictions that have less hostile regulatory environments. According to the Democratic Party’s leaked memo, it is crypto entities’ refusal to comply with the laws which is the problem. The leaked memo’s message number 4 said:
“The problem isn’t ambiguity — it’s mass non-compliance with existing laws, and crypto companies can’t be let off the hook. The The U.S. financial system has been characterized by a robust regulatory system which has supported mass innovation for decades. We can’t invent new accommodating regulatory structures simply because crypto companies refuse to follow clear rules of the road.”
The memo urges the SEC chairman under fire to step down Democratic Members of the committee will highlight how Gensler His enforcement team has been working to protect investors. Republicans Are you seeking? “reverse course and tie the hands” The regulator. DemocratsThe SEC must be permitted to “continue to lead the regulation of the U.S. crypto market.” The U.S. Congress The memo said that the SEC must be given the resources necessary to do its job.
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