Treasury Secretary Steven Mnuchin has been warned to ‘think again‘ over possible regulations on US cryptocurrency wallets.
Four Republican representatives, Warren Davidson (Ohio), Tom Emmer (Minnesota), Ted Budd (North Carolina) and Scott Perry (Pennsylvania), sent a letter to Mnuchin on Wednesday expressing concern about upcoming regulations on personal wallets, according to CoinDesk.
As you may recall, Brian Armstrong, CEO of us cryptocurrency exchange Coinbase, posted a series of tweets on the issue in late November, saying the government was aiming to release a regulatory package on personal cryptocurrency wallets before the Trump era. The Coinbase CEO mentioned that “know your customer” data, also known as KYC, had to be reported to exchanges before funds were withdrawn, and claims dropped like bombs. Even after the tweets sent at midnight, there was a serious decline in the market.
Concerns raised in letter
4 Republican Representative in a letter to Mnuchin yesterday expressed concerns that the new regulations would prevent the U.S. public from participating in this universe and also undermine the state’s fight against illegal actors, especially the Treasury Department. The representatives also noted that such requests for detailed data would also threaten user privacy, and that the United States must strike a balance between the traditional and cryptocurrency financial ecosystem. It even warned that people who already use such wallets with this law would be considered potential criminals by the state.
Warren Davidson, one of the representatives, said in an online statement that Mnuchin should have come to the House of Representatives and briefed them before issuing the regulations:
“ENABLING SUCH A PACKAGE OF LAWS ON PERSONAL WALLETS WOULD LEAVE THE UNITED STATES BEHIND IN THE RACE TO EXPLOIT BLOCKCHAIN AND CRYPTOCURRENCY TECHNOLOGY WITH THE REST OF THE WORLD.”
In fact, this article is a second letter sent to the relevant authorities. Earlier that day, Tom Emmer wrote another letter to Joy Clayton, head of Securities and banks. the Exchange Commission is demanding a clearer method of storing cryptocurrencies and accurate guidance from the Financial Regulatory Authority for intermediaries and intermediaries. However, Clayton is expected to leave the presidency at the end of 2020.