Since the U.S. Treasury Department released a document of FinCEN (U.S. Financial Crimes Enforcement Network) on December 18 (local time) containing the restrictions on personal wallets (Unhosted Wallet), the nervous war on cryptocurrency regulation in the U.S. is intensifying. Currently, some members of the U.S. Congress are calling for tightening regulations, citing the withdrawal of cryptocurrency regulation protection. Accordingly, the industry is requesting an extension of the period for collecting public opinions on the regulatory proposal.
#Some lawmakers “must withdraw the protection of cryptocurrency regulations to protect investors”
FinCEN’s new regulation is creating a backlash from the industry because it can infringe on the privacy of investors and that it is technically difficult to create an infrastructure to meet the regulation. However, U.S. regulators are showing strong will, such as reducing the public opinion period, originally set at 60 days, to 15 days. Currently, the deadline for collecting public opinions is set on January 4, 2021.
In addition, some US lawmakers are requesting crypto-friendly regulatory protection to protect investors. If the views of these US lawmakers are accepted, several safeguards to foster the crypto-related industry could be eliminated. Some are expressing concern that the Trump administration could rush the bill before the Biden administration comes in. Meanwhile, on November 26, Bitcoin plunged about -14% only by rumors of US cryptocurrency regulations.
#The industry requests an extension of the period for regulatory proposal Variable is the establishment of the Biden government
In response, the US industry is requesting an extension of the period for collecting opinions on regulatory proposals. According to foreign media, the number of petitioners for extension currently exceeds 5,000. The original target number was 2,500. If the industry’s request is accepted, the period for public comment is expected to increase from 30 days to a maximum of 90 days. The extended period includes an event called the inauguration of the Biden government, which is a reaction that the position of regulators may change.
#OCC Commissioner “Do not remove cryptocurrency-friendly regulations for political purposes”
Meanwhile, OCC (U.S. Monetary Supervisory Service) Commissioner Brian Brooks raised concerns about the abolition of cryptocurrency-friendly regulations in the US politics, saying, “A number of lawmakers are urging President-elect Biden to withdraw cryptocurrency-friendly regulations in political terms.” . Regarding this, he said, “The US has already talked about cryptocurrency-friendly regulations, such as discussing banks’ support for stablecoins,” he said. “If these regulatory protections are removed due to political issues, investor protection will not be fully achieved.”
Reporter Jo Indie Park Sanghyuk