Senator-Elect Urges Treasury Secretary to ‘Engage with Industry” & Against ‘Hasty’ Wallet Regulations
U.S. Senator-elect from Wyoming, Cynthia Lummis, shares her “deep” concerns with the Treasury Department considering “a hasty rule” to govern the self-hosted digital asset wallets and the Bank Secrecy Act.
Ever since Coinbase CEO Brian Armstrong first tweeted last month about Treasury Secretary Steven Mnuchin planning on imposing new restrictions on businesses that interact with these self-hosted wallets like exchanges, the market has been abuzz with uncertainty and some fear.
As we reported a week ago, several US lawmakers also sent a letter to the Treasury Secretary, expressing their concern about these rumored regulations, saying they will “crush a nascent industry” and “hinder American leadership.”
#GoodNews Thanks to the good people of Wyoming for sending reinforcements! @CynthiaMLummis we miss you @freedomcaucus but we’re happy you’ll be in the @SenateGOP. Those charged with securing America’s financial future should not fear the light of public debate and recorded votes. https://t.co/1etbhWVCMV
— Warren Davidson (@WarrenDavidson) December 18, 2020
Now, Bitcoin-friendly and holder Cynthia Lummis has come out in support of the crypto industry, calling for the Treasury to not be in a rush in “America’s battle for competitiveness with China and Russia for the future of finance.” She urged the Treasury to “realize the transformative effects of digital assets.”Lummis added,
“Rather than prematurely adopting a rule on this complex topic, Treasury should immediately begin a transparent process to engage with Congress and industry, building a consensus to drive America forward.”
Lummis has spoken with Secretary Mnuchin and “strongly pressed him for a better path forward.” Congress needs to weigh the competing policy issues that are at stake, she said. “Let the sunshine in, Mr. Secretary,” Lummis added.
Having a committed ally of Bitcoin in the Senate is game-changing. If for nothing else than the transparency alone https://t.co/B7N6dhOmNA
— nic carter 🟩 (@nic__carter) December 18, 2020
Digital assets like Bitcoin, whose hallmark feature is to conduct transactions without intermediaries, promote “financial inclusion and freedom.” And “a rule adopted at this juncture would be a solution in search of a problem,” said Lummis.
Last week, the Financial Crimes Enforcement Network (FinCEN) also opened positions for two “Strategic Policy Officers” that will assist in providing advice and assist in developing policy responses to risks, threats, and challenges posed by digital assets.
The Block illustrated that these regulations could involve requiring crypto companies, as early as Friday, to report on the transactions larger than $10k to or from a self-hosted crypto wallet in a day. Market expert Matt Odell said,
“I already assumed they did this tbh. The concerns Armstrong and Davidson voiced seemed to expect much worse. Maybe the public concern helped. Very bullish if true.”