The SEC's cryptocurrency regulation has sparked partisan divisions, with the DEBT Box case and mixer regulation in the spotlight

U.S. Democrats and Republicans are at odds over the stance of the Securities and Exchange Commission (SEC) on cryptocurrency regulation during a congressional hearing on Tuesday. Democratic Representative Maxine Waters said that partisanship will always pursue compliance, protecting investors and market integrity, while SEC Chairperson Gary Gensler insisted that most cryptocurrencies should be treated as securities. Additionally, the SEC has been challenged in its handling of the case of cryptocurrency startup DEBT Box, in which a federal judge criticized the SEC's actions as malicious, while two attorneys for the agency resigned for mishandling the case. On the other hand, Republican lawmakers plan to repeal an SEC accounting guideline, sparking another round of controversy. The hearing also touched on the regulation of mixers, with one Democratic congressman introducing a bill aimed at cracking down on cryptocurrency mixing services suspected of money laundering. The controversies highlight the complexity of cryptocurrency regulation and the divisions between government, industry and regulators.