The United States Democratic Party has expressed its intent to back the Securities and Exchange Commission’s (SEC) total authority over crypto in a memo circulated among committee members before a hearing. The documents were shared on social media, causing backlash from crypto community members. 

On May 10, the documents were shared on Twitter, highlighting key messages for the democrats to support the SEC’s authority on crypto regulation. This includes its argument that nearly all digital assets constitute securities.

Some threatened to give their votes to other parties; others argued that there were a lot of contradictions in the documents, and various community members went on Twitter to express their dissatisfaction with the move against crypto.

According to one community member, the memorandum shows where each party stands on crypto regulation. According to the Twitter user, the Republican Party wants a clear framework, while the Democratic Party asserts that the SEC has already clarified that almost all digital assets are securities.

Meanwhile, another member of the community expressed that they could no longer be a part of the party. The community member argued that the Democratic Party is playing god with the “future of American innovation.“ In addition, the Twitter user said the party is making decisions over a technology that it does not understand.

Related: Biden calls to end $18B ‘crypto tax loopholes’ — Community begs to differ

Community member Austin Campbell also highlighted how foreign governments would be excited about the prospect of taking the future of Fintech from the United States. Campbell tweeted:

This is incredibly dumb if true; if I was a foreign government I would be ecstatic at the prospect of taking the future of fintech and financial rails from the United States on this basis.

Going to create a lot of ex-Dems among young people too with these lies. https://t.co/y1BkSV1jDM

— Austin Campbell (@CampbellJAustin) May 10, 2023

On May 8, Coinbase visited the United Arab Emirates to determine its potential as a strategic hub for the crypto exchange. At the Dubai Fintech Summit, Coinbase CEO Brian Armstrong said the U.S. is “a little bit behind” in terms of regulatory clarity. The executive also shared that he met with UAE Minister of Economy Abdulla Bin Touq Al Marri during the visit. 

In the same event, Crypto Oasis co-founder Saqr Ereiqat spoke about how the UAE’s infrastructure is more business-friendly than the United States. The executive argued that the regulatory framework in the U.S. is “complex and fragmented,” while the UAE is more streamlined and highlighted a growing interest in the region.

Magazine: Crypto regulation: Does SEC Chair Gary Gensler have the final say?