Following a US Congressional listening to on cryptocurrencies, a leaked inside memo circulating amongst Democratic members of the Home Monetary Providers Committee exhibits they’re advocating for the US Securities and Alternate Fee (SEC) to be the primary regulator of cryptocurrencies.

In accordance with Ron Hammond, director of presidency relations on the Blockchain Affiliation, the proposal didn’t obtain assist from a majority of Republicans on the committee, who as a substitute favored commodity futures contracts for cryptocurrencies, together with the bitcoin and ethereum. Spot commodities markets are topic to interim oversight by the Commerce Fee (CFTC).

Republicans additionally assist congressional involvement in defining titles and digital merchandise. In the meantime, most Democrats insist that almost all tokens ought to be categorized as securities.

The proposal remains to be in its early levels, and the Republican committee has but to formally submit a stablecoin invoice.

Nonetheless, if the Democrats’ proposal is carried out, it could be an essential step towards clarifying the regulatory panorama for cryptocurrency and probably bringing the trade nearer to the SEC, America’s prime securities regulator.

Some cryptocurrency consultants have expressed concern in regards to the SEC’s capability to manage the crypto market, which is at all times evolving and poses distinctive challenges.

Nonetheless, proponents of the proposal argue that bringing the market beneath the jurisdiction of the SEC would offer larger safety for buyers and assist set up clearer and extra constant guidelines for digital property.

Regulatory transparency has grow to be an more and more urgent challenge following current high-profile controversies surrounding cryptocurrencies, together with the debacle of some stablecoins and the usage of encryption in ransomware assaults.

The proposal is only one of many discussions and debates surrounding the regulation of digital property in the USA and all over the world.