Leak Reveals Secret Democrat Plan For A GameChanging U.S. Crypto Crackdown That Could Hit The Price Of Bitcoin And Ethereum

Bitcoin: BTC: , Ethereum and other major cryptocurrencies have struggled this year with a crackdown on cryptocurrencies in the US that some say could "destroy the entire value of bitcoin."

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Bitcoin price has risen in the first months of 2023, but is still far from its late 2021 levels as traders embrace the 'new market regime'. Meanwhile, the fate of Ethereum and other cryptocurrencies hangs in the balance as US regulators try to control the market.

Now, a leaked memo provided to members of the House Financial Services Committee has revealed the "key messages" lawmakers need to get in order to classify almost any cryptocurrency as a security.

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The document, which Democrats sent to committee members ahead of Wednesday's House joint hearing on crypto policy, was leaked on Twitter by Fox Business reporter Eleanor Terrett. "The problem is not the lack of clarity, but the massive disregard of existing laws," the memorandum states. "We cannot invent new, convenient regulatory structures just because crypto companies refuse to follow clear rules of conduct."

The message calls on Democratic lawmakers to take a stand against Republican claims. "They are working to clear the markets to make way for the Cryptocurrency Commodity Futures Trading Commission (CFTC)"... Republicans prove they really do. That is, it is about protecting investors and consumers. »

Bitcoin, Ethereum and cryptocurrencies have become a partisan issue in recent years, with prominent Republicans such as Ted Cruz voicing support for cryptocurrencies, while influential former Democratic presidential candidate Elizabeth Warren supports the idea of ​​"building a cryptocurrency." . The army."

US President Joe Biden issued an executive order last year directing federal agencies to investigate how to respond to the bitcoin, ethereum and crypto boom.

Under Chairman Gary Gensler, the US Securities and Exchange Commission (SEC) asserted authority over the crypto market and proposed that all cryptocurrencies except Bitcoin be considered unregistered securities.

"The SEC and the CFTC both agree that the SEC is the regulator responsible for determining whether cryptoassets are securities, and the SEC has clarified that virtually all cryptoassets are securities," he said in the memo, adding: "

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Gensler, who has been criticized by the crypto community for his "enforcement through regulation" approach, has repeatedly asked Congress for more resources to better police the crypto market.

"Republicans want to change course and tie the CEC's hands," the memo says. "The SEC must continue to lead the way in regulating the US crypto market, and Congress must do its part to provide it with the resources it needs."

Bitcoin, Ethereum and the crypto industry have widely criticized the memo.

"Strange that they would put something so illegal in writing," tweeted BlockTower Capital chief investment officer Ari Paul. "The SEC does not have the authority to determine what is and what is not a security according to the law. For them, it would be a violation of the laws that regulate their activity."

American secrets were released on social media in a post published by Ukrainian and Russian documents