Leaked Memo Suggests Democrats on US House Committee Were Told to Support Party Position on Crypto Regulation – Featured Bitcoin News

Democratic members of the US House Committee on Financial Services were handed a memorandum asking them to support the party’s position on cryptocurrency regulation moments before the start of hearings on May 10. According to the leaked party memo, the Democrats on the committee were expected to do so. It indicates the Republican Party’s lack of interest in protecting investors. The memo also said that the US Securities and Exchange Commission (SEC) should be allowed to “continue to lead the regulation of the cryptocurrency market in the United States.”

Republicans accused of undermining the SEC

According to a leaked memo shared by Eleanor Territt, a Fox Business journalist, Democratic members of the US House Financial Services Committee were instructed to support the party’s position on cryptocurrency regulation when the committee met on May 10. mailTerritt claimed that the memorandum stating this was circulated to the members of the Democratic committee before the hearings began.

🚨SCOOP: Before today @employee/@employee Hearing regarding digital asset regulation, a memo was circulated to the Democratic committee members.

It contained “key messages” for @employee stick including backing @employeeFull authority over coding regulation,… pic.twitter.com/AabSfwquaw

– Eleanor Terrett May 10, 2023

As indicated in the leaked joint memo, Democrats on the committee were expected to repeat six key messages during the hearings. The first of these messages is the party’s argument that the Republicans on the committee are firmly intent on “creating space for the CFTC in cryptocurrencies.” By doing so, according to the memo, Republicans not only undermine the SEC, but also show a lack of interest in “protecting investors and consumers.”

The second and third letters claimed that the Republicans on the committee had no interest in avoiding economic disaster that would befall the United States if the debt ceiling was not raised. According to the memo, Republicans’ only concern is passing digital asset laws that neither the Biden administration nor investors have requested.

As reported by Bitcoin.com News, the Biden administration and US regulators have hardened their stance on cryptocurrencies since the start of 2023. Through US Securities and Exchange Commission Chairman Gary Gensler, the administration has targeted crypto entities that are accused of offering securities without the required approval.

“collective non-compliance with existing laws”

The SEC’s unclear definition of what constitutes security combined with crackdowns on crypto entities has so far forced entities like cryptocurrency exchange Coinbase to consider moving to jurisdictions with less hostile regulatory environments. However, according to the leaked Democratic Party memo, the problem is the refusal of crypto entities to comply with the laws. The message of the leaked memo No. 4 read:

The problem isn’t obscurity – it’s a mass lack of compliance with existing laws, and crypto companies can’t be let go. The United States has a well-functioning regulatory system that has continued to innovate collectively in the financial system for decades. We cannot devise new convenient regulatory structures just because crypto companies refuse to follow clear rules of the road.

Regarding the SEC chairman, the memo urged Democratic committee members to highlight how Gensler and his enforcement team are working to protect investors and how Republicans are seeking to “reverse course and tie the hands” of the regulator. According to the Democrats, the SEC should be allowed to “continue to lead the regulation of the cryptocurrency market in the United States.” The memo added that the US Congress should play its role by providing the Securities and Exchange Commission with the resources it needs.

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Terrence Zemoara

Terence Zemwara is an award-winning Zimbabwean journalist, author and writer. He has written extensively about the economic problems of some African countries as well as how digital currencies can offer Africans an escape route.