What’s next for crypto regulation

This week, the Treasury Department’s Financial Crimes Enforcement Network, known as Finken, increased The comment period for the proposed reporting rules on digital wallet transactions up to 60 days states that this would prevent money laundering. Previously announced on 23 December, with a comment period of 15 December, the move sparked outrage in the crypto community. The regulator twice relied, noting the “strong” engagement, which came after opponents called “midnight rule” by the Treasury’s secretary Steven Menuchin at the time.

It showed that the crypto industry could force a spindle by a powerful agency. He argues that the proposed Disclosure and Record Keeping Requirements Jack Dorsey of Twitter and Square wrote that is “arbitrary and unfair” A note letter:

The inconsistency between the treatment of cash and cryptocurrency under Finken’s proposal would prevent the adoption of cryptocurrency and invade the privacy of individuals. Nevertheless, the rule fails to explain the difference in risk.

The procedural victory does not guarantee that the Treasury’s new secretary, Janet Yellen, will shift gears over the case. At her confirmation hearing, she suggested that several cryptocurrency transactions were linked to illegal activity, which Ms. Smith of the Blockchain Association called a “very disappointing response”. In later written testimony, Ms. Yellen offered Take more granularly, Regulators should “watch closely to encourage their use for lawful activities to prevent their use for malicious and illegal activities.”

Chris Brumer, Georgetown law professor and a “Fintech guru, “In the race to become the next CFTC commissioner elected to the same gig in 2016, his nomination was withdrawn by the Trump administration. Since then, Mr. Brummer has Testified before Congress On blockchain policy, edited an online magazine and book on crypto assets, and wrote a textbook, “Fintech law in nutshell. “He is an expert, in other words.

Whoever, “Knowledge cannot fill key regulatory gaps,” Mr. Masad of Harvard said. In his view, although crypto savvy are the next financial regulators, they cannot solve the problems that are raised by new technologies without comprehensive legislation designed for digital assets. Otherwise, too much crypto activity will be left unregulated for too long.

A case in point, perhaps, is Civil enforcement action Filed in fall by CFTC, accusing BitMEX of operating an unregistered trading platform selling cryptocurrency, a cryptocurrency exchange. It is alleged to have facilitated transactions since 2014 with “the most basic compliance procedures” earning more than $ 1 billion in fees. Bitmakes Have an answer Next month. in Partner criminal caseThe Department of Justice argues that BitMEX intentionally violates anti-money laundering rules.

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