Leaked Memo Reveals Democrats Aim To Classify Crypto As Securities: Report

Key Points:

• A leaked memo among Democratic members of the House financial services committee suggested that almost all cryptocurrencies could be categorized as securities.

A leaked Memo reveals Democrat suggests almost all cryptocurrencies may be securities, causing concern in the crypto industry. Bipartisan bill reintroduced to Congress over cybersecurity and financial stability of the cryptocurrency.

Recently, Forbes reported a leaked memo circulated among Democratic House financial services committee members, outlining the key messages lawmakers should stick to during Wednesday’s joint House hearing on crypto policy.

The memo caused concern among the cryptocurrency industry, as it suggested that almost all cryptocurrencies could be categorized as securities. It also called for Democrat lawmakers to push back on Republican claims that they are working to provide clarity to the markets by carving out space for the Commodity Futures Trading Commission (CFTC) in crypto.

The memo emphasized the importance of enforcing existing laws. Some believe the U.S. crypto crackdown could “destroy all value of bitcoin.” The fate of ethereum and other cryptocurrencies is also hanging in the balance as U.S regulatory agencies battle for market control. Republicans, such as Ted Cruz, have backed crypto, while influential former Democrat presidential hopeful Elizabeth Warren has embraced the idea of “building an anti-crypto army.”

The memo’s call for categorizing almost all cryptocurrencies as securities is not only concerning but also raised questions about how this would impact the entire cryptocurrency industry. There is also the possibility that this would lead to greater regulation of the market, which could impact investors and consumers.

Elsewhere, a bipartisan bill was reintroduced to Congress by lawmakers that would require U.S. federal agencies to report on El Salvador’s cybersecurity and financial stability capabilities as part of efforts to fight using cryptocurrency as legal tender.

The bill claims that Bitcoin could “weaken economic and financial stability and empower malign actors.” El Salvador became the world’s first country to make bitcoin legal tender in 2021. The country’s president, Nayib Bukele, bought almost 2,400 bitcoins as part of a plan to make bitcoin a core part of the country’s economy.

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