Crypto community reacts to US Democrats backing SEC’s crypto authority

Crypto community reacts to US Democrats backing SEC’s crypto authority

One community member announced their decision to leave the Democratic Party, claiming that they were playing god with “the future of American innovation.”

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In a memo distributed to committee members prior to an hearing, the United States Democratic Party expressed its intention to support the Securities and Exchange Commission (SEC)’s total authority over cryptocurrency. The documents were circulated on social media and caused a backlash among crypto community members.

On May 10, shared the documents on Twitter. This highlighted key messages to the Democrats, encouraging them to support the SEC’s authority in crypto regulation. It also argues that almost all digital assets are securities.

claimed that the documents were contradictory, while others expressed their dissatisfaction on Twitter.

One community member said that the memo shows how each party views crypto regulation. According to a Twitter user, Republican Party members want a clear framework while Democratic Party members claim that the SEC already clarified the fact that most digital assets are securities.

Another member of the community also expressed they no longer wanted to be a party member. The member of the community argued that the Democratic Party was playing god with “the future of American innovation”. In addition, he said that the Twitter user claimed that the party makes decisions about a technology it doesn’t understand.

Related: Biden calls for an end to $18B in ‘crypto-tax loopholes’ – Community disagrees

Austin Campbell, a community member, also stressed how excited foreign governments would be to take the Fintech future from the United States. Campbell tweeted the following:

Coinbase made a visit to the United Arab Emirates on May 8 in order to assess its potential as a strategic center for crypto exchange. Coinbase CEO Brian Armstrong stated that the U.S. was “a little behind” when it comes to regulatory clarity at the Dubai Fintech Summit. The executive revealed that he also met with UAE Economy Minister Abdulla Bin Touq Al Marri on the trip.

Saqr Ereiqat, co-founder of Crypto Oasis, spoke at the same event about and how the UAE infrastructure is more business friendly than that of the United States. The executive said that the U.S. regulatory framework is “complex” and “fragmented,” while the UAE’s is more streamlined. He also highlighted the growing interest in the region.

Magazine: Crypto regulation – Does SEC chair Gary Gensler have final say?