A leaked memo has triggered concern among the cryptocurrency industry, as it suggested that almost all cryptocurrencies could be classified as securities. This latest development comes at a time when U.S regulatory agencies are vying for control of the digital asset space. With the rise of Bitcoin, and El Salvador making the cyrptocurrency legal tender, there is reason for worry about how this new legislation could affect the entire industry.

The Democrats are largely focused on enforcing existing laws, and the memo raises questions about how this could impact investors and consumers. In response to a potential crypto-crackdown, influential figures such as former Democrat presidential hopeful Elizabeth Warren have voiced their opinion in favor of “building an anti-crypto army”. Meanwhile, Republicans such as Ted Cruz have taken a different approach, advocating for providing greater clarity to the markets by carving out space for the Commodity Futures Trading Commission (CFTC) in crypto.

The Democrats have proposed a bipartisan bill that would require U.S. federal agencies to report on El Salvador’s cybersecurity and financial stability capabilities as a step towards tackling the use of bitcoin as legal tender. It is argued that the use of cryptocurrency could “weaken economic and financial stability and empower malign actors”.

The new legislation proposed by the Democrats is a cause for alarm, as it could have a massive impact on the cryptocurrency industry. It is the hope of many in the crypto space that the bill does not result in a greater regulation of the market. Nevertheless, it remains to be seen how the landscape of digital currencies will fare in light of this latest development.



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