How the Democratic Party Aims to Control the Cryptocurrency Industry
A confidential memorandum has revealed that the United States Democratic Party seeks to increase its control over the cryptocurrency sector.
The Democrats gave their committee members a memo called “The Future of Digital Assets: Measuring Regulatory Gaps in Digital Asset Markets” before the House Financial Services Committee’s hearing on digital assets. The memo said that the party wants to control the industry, led by SEC Chairman Gary Gensler, and gave important instructions to the members. It said that the Democrats want to stop illegal activities in the cryptocurrency world and protect investors and consumers. Gensler is playing a big part in making this happen.
Meanwhile, Republican committee members intend to pass cryptocurrency-friendly legislation before the end of June. However, the Democrats are keen to maintain their regulatory influence over the US cryptocurrency market.
Regulatory Clarity and Political Accusations Surrounding SEC’s Designation of Cryptocurrencies as Securities
The SEC and CFTC recently issued a memorandum stating that the SEC should determine whether cryptocurrencies are securities. According to the SEC, most crypto-assets are securities, but the primary issue is non-compliance with existing regulations, not regulatory ambiguity.
Republican supporters of the cryptocurrency industry are defending it and accusing SEC Chair Gensler of neglecting his regulatory duties and engaging in political practices. The House Financial Services Committee and the Subcommittee on Oversight and Investigations are demanding that Gensler release internal documents and communications with Sam Bankman-Fried. The SEC and CFTC have issued a memorandum stating that the SEC should determine whether most crypto-assets are securities. However, non-compliance with existing regulations is the main issue, not regulatory ambiguity.
The escalating conflicts between factions have created uncertainty about the future of the cryptocurrency sector in the US. Currently, the aggregate market capitalization is at 1,109 trillion, having rebounded from a pivotal support level the previous day.