- US Treasury shifts focus to unhosted wallets in fight against money laundering.
- Outspoken Bitcoin advocate Senator Lummis expresses concerns over lack of transperancy.
In an announcement on Friday, the US Department of Treasury's Financial Crimes Enforcement Network proposed a new rule that would allow it to monitor cryptocurrency transactions using self-hosted wallets. The statement read as follows:
Under the Notice of Proposed Rulemaking (NPRM) submitted to the Federal Register today, banks and money services businesses (MSBs) would be required to submit reports, keep records, and verify the identity of customers in relation to transactions above certain thresholds involving CVC/LTDA wallets not hosted by a financial institution (also known as “unhosted wallets”) or CVC/LTDA wallets hosted by a financial institution in certain jurisdictions identified by FinCEN.
Commenting on the proposal, US Treasury Secretary Mnuchin explained that the new rule addresses substantial national security concerns in the CVC market and aims to stop "malign actors" from exploiting the recordkeeping and reporting regime.
Lummis asks Congress to get involved
Senator-elect Cynthia Lummis, who voiced her support for cryptocurrencies by arguing that Bitcoin is a great store of value that could be used to tackle the US national debt, shared her views on this development in a Twitter thread.
Lummis made it clear that she is deeply concerned with the proposed. Wyoming's first female Senator called upon the Treasury to kickstart a transparent process that involves Congress and industry leaders while arguing that a rule without broad consensus would hurt the US against China and Russia in the battle for the future of finance.
"A hallmark feature of digital assets, like Bitcoin, is the ability to conduct transactions without an intermediary," Lummis further noted. "This promotes financial inclusion and freedom. A rule adopted at this juncture would be a solution in search of a problem. More pressing Bank Secrecy Act (BSA)-related issues exist."
Warren Davidson, Congressman serving Ohio's 8th District, backed Lummis' stance and said those charged with securing America’s financial future should not fear the light of public debate.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Vitalik Buterin slams controversial gambling project ZKasino following scam allegations
Ethereum founder Vitalik Buterin took to Warpcaster, a new type of social network, to condemn ZKasino, a decentralized gambling platform based on Layer 2 Ethereum protocol zkSync.
Starknet jumps 2% after notice inviting specific groups to claim STRK airdrop
Starknet Foundation addressed the groups within the STRK community that were unable to receive the token’s airdrop during the first round. The Layer 2 chain organized an airdrop event in February.
XRP price capped at $0.55 despite retail holdings nearing all-time highs
Ripple price (XRP) failed to break resistance at $0.55 early Wednesday as traders continue to digest Ripple’s recent response to the Securities and Exchange Commission’s (SEC) allegations of illegally selling XRP as a security.
Binance founder Changpeng Zhao could face three-year jail time
US prosecutors are requesting Binance founder and former CEO Changpeng Zhao (CZ) to serve a three-year jail time, according to a Reuters report published Wednesday.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?