HOME CATEGORIES WRITE AND EARN 🔍
CATEGORIES WRITE AND EARN MORE

CRYPTO NEWS

Your favorite crypto news blog

U.S. Congress Members Opposed Treasury Crypto Ruling

Crypto 2021/01/02 03:00 by Nick Chong

One of the biggest stories in crypto right is the news that the Financial Crimes Enforcement Network (FinCEN) branch of the U.S. Treasury is working on cracking down on self-hosted wallets in crypto.

A document that outlines the proposed rule suggests that exchanges and other virtual asset service providers will need to verify the name and address of those that attempt to make withdrawals of over $3,000.

Related Reading: DeFi Founder Targeted in $8m Hack Says He Has His Hacker’s IP

Proposed Rule Makes No Sense

While this is being done to prevent crypto crime, some think that this doesn’t make any sense.

Kathryn Haun, a general partner at a16z focused on crypto assets, wrote on the matter:

“Late yesterday, instead of following that process,  @stevenmnuchin1 slashed the ordinary comment period to just 15 days, on a Friday before the holidays no less, for crypto regulations that to us @a16z and others in the crypto space don’t make much sense.”

There are others that have highlighted that this is redundant and just a way to prevent users from controlling their own funds. As is, most regulated exchanges have to take the names, addresses, and other details of traders that use fiat. This new rule doesn’t change much and actually goes further than traditional financial institutions need to go for cash transactions.

This rule has created such a stir that U.S. Congress members are coming out against the Treasury in a written letter.

Related Reading: Wall Street Veteran Kickstarts Own Bitcoin Fund With $25m Investment

Proposed Crypto Ruling By U.S. Treasury Opposed by Congresspeople

In a letter sent to the Treasury on December 31st, 9 congresspeople wrote that they have concerns over the proposed crypto ruling by FinCEN:

“We write to express our concerns regarding the process to respond to the Financial Crimes Enforcement Network’s (FinCEN) Notice of Proposed Rulemaking (NPRM) related to “Requirements for Certain Transactions Involving Convertible Virtual Currency or Digital Assets.” We share your goals of protecting national security and supporting law enforcement in their efforts to combat criminals who seek to engage in money laundering, illicit financing, and other criminal activity. However, we are concerned that the Treasury Department’s approach to establishing complex new rules for the recordkeeping and reporting of convertible virtual currency and legal tender digital asset transactions do not afford the American public a reasonable opportunity to respond.”

The group seems to be most opposed to the lack of time given for the American people and for others to respond to the proposed ruling.

The group that sent this letter includes Tom Emmer, Tom Cotton, Warren Davidson, Tulsi Gabbard, and a number of other members of Congress.

Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Unsplash
Chart from TradingView.com
Price Tags: 
U.S. Congressmembers Opposed Treasury Crypto Ruling

0 Like(s)



You should also read...

Bitcoin 17/11/19 01:15 by Kai Sedgwick
Bitcoin Traders Are Finding Creative Ways to Avoid KYC
Cryptocurrency traders on Bisq are using Revolut to buy and sell bitcoin without the need for KYC/AML. The decentralized, peer-to-peer marketplace allows anyone to buy or sell cryptocurrency via a ran...
Read More
Crypto 23/11/19 00:00 by Kai Sedgwick
How to Navigate the Minefield of Cryptocurrency Taxation
National tax agencies have recently made it clear that the long arms of the law will be wielded to ensure bitcoiners pay the appropriate tax on their earnings. Motivated by surging interest in crypto,...
Read More
Crypto 04/09/20 15:42 by Guest Author
Go Burstex! Have the Best Choices for Your Crypto Career
This section will give a simple explanation of what cryptocurrencies are. It will also answer other questions that you probably ask such as how many cryptocurrencies exist in the world, what is the b...
Read More
Bitcoin 22/09/20 12:50 by Bernice Nyambura
Banks Associating Bitcoin with Criminal Activity Ironically Linked to $2 Trillion in Financial Crimes
Thousands of leaked documents from the FinCEN (Financial Crime Enforcement Network) have revealed that some of the largest banking institutions have been aiding criminals to move over $2 trillion wor...
Read More
Crypto 04/12/20 11:52 by Guest Author
How You Can Effectively Trade Cryptocurrency
The emerging cryptocurrency market has generated increasing interest over the last few years, among investors of all varieties and backgrounds. Unlike traditional currencies, cryptocurrency trading is...
Read More