Media obtained a secret memorandum recommending that Democratic members of the Financial Services Committee vote to recognize all crypto-assets as securities.
The memo outlines key messages Democratic lawmakers should adhere to during a joint bipartisan hearing in the House on cryptocurrency policy.
In addition, it recommends rebutting Republican lawmakers’ claims that they are working to provide clarity to the markets by favoring the Commodity Futures Trading Commission (CFTC) as the cryptocurrency regulator.
The need for future classification of cryptocurrencies as securities was underscored by the importance of the role of the Securities and Exchange Commission (SEC) and the need to ensure economic stability and compliance with existing U.S. laws.
“The problem is not ambiguity, but massive noncompliance with existing laws.
We cannot invent new adaptive regulatory structures just because cryptocompanies refuse to follow clear rules of conduct,” the memorandum says.
The Democrats’ pre-agreed position has raised concerns among the crypto industry.
Some believe the suppression of cryptocurrency in the U.S. could set the country back, and the fate of cryptoassets like ether (ETN) hangs in the balance as conservative U.S. regulators struggle to control the market.
While Republicans, including Ted Cruz, have supported cryptocurrency, former Democratic presidential candidate Elizabeth Warren has called for an “anti-crypto army.”