U.S. SEC Cryptocurrency Regulation Sparks Partisan Divide as DEBT Box Case and Coin Mixer Regulation Take Center Stage

U.S. Democrats and Republicans diverged at a congressional hearing on Tuesday over the Securities and Exchange Commission's (SEC) position on cryptocurrency regulation. Democratic Representative Maxine Waters said the party will always pursue compliance, investor protection and market integrity, while SEC Chairman Gary Gensler insisted that most cryptocurrencies should be considered securities. In addition, the SEC has been challenged over its handling of the case of cryptocurrency startup DEBT Box, in which a federal judge criticized the SEC for acting in bad faith, and two of the agency's attorneys resigned over the mishandling of the case. On the other hand, Republican lawmakers have sparked another round of controversy with their plan to repeal one of the SEC's accounting guidelines. The hearing also touched on the regulation of blenders, with one Democratic congressman introducing a bill aimed at cracking down on cryptocurrency blending services suspected of money laundering. The controversies highlight the complexity of cryptocurrency regulation and the divisions that exist between the government, industry and regulators.