{"id":20892,"date":"2023-05-13T08:47:58","date_gmt":"2023-05-13T08:47:58","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/leaked-memo-suggests-democrats-on-us-house-committee-were-told-to-support-party-position-on-crypto-regulation-featured-bitcoin-news\/"},"modified":"2023-05-13T08:47:58","modified_gmt":"2023-05-13T08:47:58","slug":"leaked-memo-suggests-democrats-on-us-house-committee-were-told-to-support-party-position-on-crypto-regulation-featured-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/leaked-memo-suggests-democrats-on-us-house-committee-were-told-to-support-party-position-on-crypto-regulation-featured-bitcoin-news\/","title":{"rendered":"Leaked Memo Suggests Democrats on US House Committee Were Told to Support Party Position on Crypto Regulation \u2013 Featured Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Democratic Party members of the U.S. House Committee on Financial Services were handed a memo instructing them to back the party\u2019s position on crypto regulation moments before the commencement of the hearings on May 10. According to the party\u2019s leaked memo, Democrats on the committee were expected to point to the Republican Party\u2019s lack of interest in protecting investors. The memo also said the U.S. Securities and Exchange Commission (SEC) should be allowed to \u201ccontinue to lead the regulation of the U.S. crypto market.\u201d<\/strong><\/p>\n

Republicans Accused of Undermining the SEC<\/h2>\n

According to a leaked memo shared by Eleanor Terrett, a journalist with Fox Business, Democratic Party members on the U.S. House Committee on Financial Services were given instructions to back the party\u2019s position on crypto regulation when the committee met on May 10. In a Twitter post<\/a>, Terrett claimed that the memo stating this had been circulated among Democrat committee members prior to the start of the hearings.<\/p>\n

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\ud83d\udea8SCOOP: Prior to today’s @FinancialCmte<\/a>\/@HouseAgGOP<\/a> hearing on digital asset regulation, a memo was circulated among Democrat Committee members. <\/p>\n

It contained “key messages” for the @FSCDems<\/a> to stick to including supporting the @SECGov<\/a>‘s total authority over crypto regulation,\u2026 pic.twitter.com\/AabSfwquaw<\/a><\/p>\n

\u2014 Eleanor Terrett (@EleanorTerrett) May 10, 2023<\/a><\/p>\n<\/blockquote>\n

As shown in the shared leaked memo, Democrats on the committee were expected to reiterate six key messages during the hearings. The first of these messages is the party\u2019s argument that Republicans on the committee are hell-bent on \u201ccarving out space for the Commodities Futures Trading Commission (CFTC) in crypto.\u201d Doing this, according to the memo, meant that Republicans are not only undermining the SEC but are also exhibiting a lack of interest in \u201cprotecting investors and consumers.\u201d<\/p>\n

The second and third messages claimed Republicans on the committee have no interest in averting an economic catastrophe that will befall the U.S. if the debt ceiling is not raised. According to the memo, Republicans\u2019 only interest is passing digital asset laws which neither the Biden Adminstration nor investors have asked for.<\/p>\n

As has been reported<\/a> by Bitcoin.com News, the Biden Adminstration and U.S. regulators have hardened their stance on crypto since the start of 2023. And through the chairman of the U.S. Securities and Exchange Commission Gary Gensler, the administration has targeted crypto entities that are accused of offering securities without the requisite approval.<\/p>\n

\u2018Mass Non-Compliance With Existing Laws\u2019<\/h2>\n

The SEC\u2019s 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 mull relocating to jurisdictions with less hostile regulatory environments. However, according to the Democratic Party\u2019s leaked memo, it is crypto entities\u2019 refusal to comply with the laws which is the problem. The leaked memo\u2019s message number 4 said:<\/p>\n

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The problem isn\u2019t ambiguity \u2014 it\u2019s mass non-compliance with existing laws, and crypto companies can\u2019t be let off the hook. The U.S. has a regulatory system that has worked well and sustained mass innovation in the financial system for decades. We can\u2019t invent new accommodating regulatory structures simply because crypto companies refuse to follow clear rules of the road.<\/p>\n<\/blockquote>\n

Concerning the under-fire SEC chairman, the memo urged Democratic committee members to highlight how Gensler and his enforcement team have worked to protect investors and how Republicans are seeking to \u201creverse course and tie the hands\u201d of the regulator. According to the Democrats, the SEC must be allowed to \u201ccontinue to lead the regulation of the U.S. crypto market.\u201d The U.S. Congress should play its part by providing the SEC with the resources it needs, the memo added.<\/p>\n

What are your thoughts on this story? Let us know what you think in the comments section below. <\/strong><\/em><\/p>\n

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\nTerence Zimwara <\/h6>\n

\nTerence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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