U.S. Senator Pat Toomey has urged Treasury Secretary Janet Yellen to “make significant revisions” to the proposed crypto regulation by the Financial Crimes Enforcement Network (FinCEN) and the planned adoption of the guidance issued by the Financial Action Task Force (FATF).
Senator Asks Janet Yellen to Revise Proposed US Crypto Regulation
U.S. Senator Pat Toomey wrote a letter to Treasury Secretary Janet Yellen Thursday regarding the U.S. approach to cryptocurrency regulation. “I write to raise concerns with two proposals involving the Department of the Treasury related to the regulation and oversight of cryptocurrencies,” he began.
The first concern relates to FinCEN’s proposed rule for cryptocurrency transactions and the second relates to the FATF guidance on cryptocurrencies and virtual asset service providers (VASPs). The senator described:
While I recognize that FinCEN and FATF’s proposals are seeking to address the misuse of cryptocurrencies for illicit activity, if adopted, they would have a detrimental impact on financial technology (fintech), the fundamental privacy of Americans, and efforts to combat illicit activity. I urge you to make significant revisions to them.
The senator spent the first part of his letter explaining that “Fostering financial innovation is important” for the U.S. He believes that “cryptocurrencies stand to dramatically improve consumers’ privacy, access to financial services, and power to make decisions for themselves.”
Toomey then asserted that FinCEN’s proposed crypto rule “will negatively impact” the U.S., citing two key reasons. Firstly, it would impose “onerous recordkeeping” and reporting requirements on crypto transactions “that extend beyond existing requirements for U.S. dollar transactions.” Secondly, he argued:
FinCEN’s proposed rule may also prove to be counterproductive in combating illicit activity … By limiting individual privacy and the…