The Democratic Party in the United States has expressed its intent to back the Securities and Exchange Commission’s total authority over crypto in a memo that circulated among committee members prior to a hearing. The documents were shared on social media, causing backlash from members of the crypto community.
On May 10, the documents were shared on Twitter, highlighting key messages for the democrats to support the SEC’s authority on crypto regulation. This includes its argument that nearly all digital assets constitute securities.
From threatening to give their votes to other parties to arguing that there are a lot of contradictions in the documents, various members of the community went on Twitter to express their dissatisfaction with the move against crypto.
According to one community member, the memorandum shows where each party stands on crypto regulation. According to the Twitter user, the Republicans want a clear framework while the Democrats assert that the SEC has already clarified that almost all digital assets are securities.
Meanwhile, another member of the community expressed that they can no longer be a part of the party. The community member argued that the Democrats are playing god with the “future of American innovation.” In addition, the Twitter user said that they are making decisions over a technology that they do not understand.
Related: Biden calls to end $18B ‘crypto tax loopholes’ — Community begs to differ
Community member Austin Campbell also highlighted how foreign governments would be excited about the prospect of taking the future of Fintech from the United States. Campbell tweeted:
This is incredibly dumb if true; if I was a foreign government I would be ecstatic at the prospect of taking the future of fintech and financial rails from the United States on this basis.
Going to create a lot of ex-Dems among young people too with these lies. https://t.co/y1BkSV1jDM
— Austin Campbell (@CampbellJAustin) May 10, 2023
On May 8, Coinbase visited the United Arab Emirates to see its potential as a strategic hub for the crypto exchange. At an event called Dubai Fintech Summit, Coinbase CEO Brian Armstrong said that the U.S. is “a little bit behind” in terms of regulatory clarity. The executive also shared that he met with UAE Minister of Economy H.E. Abdulla Bin Touq Al Marri during their visit.
In the same event, Crypto Oasis co-founder Saqr Ereiqat spoke about how the UAE’s infrastructure is more business-friendly than the U.S. The executive argued that the regulatory framework in the U.S. is “complex and fragmented” while the UAE has it more streamlined and highlighted that there’s a growing interest in the region.
Magazine: Crypto regulation: Does SEC Chair Gary Gensler have the final say?