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Congress Members raise concerns over the U.S. Treasury’s Cryptocurrency Rule

Congress Members raise concerns over the U.S. Treasury's Cryptocurrency Rule

The U.S. Congressman Tom Emmer, with seven other congress members, sent a letter to the U.S. Treasury Secretary, Steven Mnuchin, expressing concern over the compressed comment period for the Treasury’s recently proposed rule for virtual currency transactions. The letter says that the 15 day comment period is too short for discussing the newly proposed cryptocurrency KYC rules.

Congress members Tom Emmer, Warren Davidson, David Schweikert, Ted Budd, Darren Soto, Bill Foster, Suzan K. DelBene, and Tulsi Gabbard signed a letter to Mnuchin asking the U.S. Treasury to prolong the comment period to over 60 days. The letter stated that a hurried process would endanger the legitimacy of the proposed crypto rule.

On Dec. 23, the FinCEN issued a Notice of Proposed Rulemaking (NPRM) for making KYC mandatory for hosted wallets. Virtual Asset Service Providers (VASPs) will require to give the data to the Treasury Department if the transaction surpasses $10,000. Nevertheless, the VASP has to assemble and maintain the data if the amount transferred passes $3,000.

Congress members demand six months to implement technological solutions

However, the crypto community has opposed the new rule as it is impractical and limiting. Moreover, the state agency provided15 days to solicit public comments on the imminent legislative proposal. Yesterday, Rep. Tom Emmer addressed the Treasury Secretary to increase the period from 15 days to 60 days on account of the holiday season. Emmer and the eight co-signatories to the letter also requested the state agencies to provide appropriate time of about six months to execute technological solutions to discuss national security and crypto-related money laundering concerns. 

Earlier, Jeremy Allaire, the CEO of Circle, wrote a similar letter requesting a one-to-two-year safe harbor to create identity protocols for blockchains. The development for which is already in action, according to the Allaire. Moreover, with three days bequeathed to the initial deadline, U.S. citizens have posted 2,000 comments on the crypto proposal. People have also embraced other methods of reaching out to the state agencies. This includes an online petition and sending emails. 

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