United States Officials: Cryptocurrency Regulation Leaves U.S. Behind
coinputin.com – Four US lawmakers want Treasury Secretary Steven Mnuchin to rethink the crypto-wallet arrangement he is said to be making.
Reps. Warren Davidson (R-Ohio), Tom Emmer (R-Minn.), Ted Budd (rn.C.) and Scott Perry (R-Penn.) On Wednesday, they sent a letter to Mnuchin expressing concern about the rumors.
Coinbase CEO Brian Armstrong had said last month that Mnuchin “plans to rush” these new regulations. Under this arrangement, citizens will have to use cryptocurrency exchanges to perform KYC verification before sending cryptocurrencies to their private wallets.
According to Wednesday’s letter, this potential regulation would undermine America’s leading position, prevent U.S. actors from participating in the field, and make it harder for the Treasury Department to stop illegal actors from exploiting the financial system.
Requiring regulators to enforce exchanges for KYC data could also threaten user privacy. According to them, the United States, unlike this regulation, should have a regulatory equivalence between the traditional financial system and the cryptocurrency ecosystem.
The letter said that if regulations on private wallets are implemented, it could cause an undesirable situation, such as turning anyone who already uses a private wallets into a criminal.
In a statement, Temcilsi Davidson said::
“Before the Treasury issues its midnight rules on the regulation of private purses, Secretary Mnuchin should come to the palace and talk to representatives about what to do about regulation.”
“Excessive regulation of private wallets will overwhelm this emerging industry and leave the United States behind the world when it comes to exploiting blockchain and cryptocurrency power.”
Emmer sent a second letter on Wednesday. In a letter to Jay Clayton, Chairman of the Securities and Exchange Commission, Emmer asked the securities regulator to establish clear guidance on cryptocurrency retention and to direct the Financial Industry Regulatory Authority to approve agents from the area.