TL;DR Breakdown
- Legislators join Coinbase to delay response date set for new FinCEN new regulation
- Legislators also align themselves with FinCEN regarding new regulation
Several US legislators have called on the Financial Crimes Enforcement Network (FinCEN) to delay responses to their recently proposed crypto regulations.
This is in lieu of FinCEN’s Notice of Proposed Rulemaking (NPRM) related to “Requirements for Certain Transactions Involving Convertible Virtual Currency or Digital Assets.”
In a letter, the US lawmakers stated that the FinCEN did not provide enough time for all concerned parties to issue their feedback.
The regulator’s proposal required digital asset exchanges to keep verified identities, records of the customers’ transactions and counterparties above certain transactions, and submit reports to authorities.
However, they set a 15-day deadline for a response as several crypto firms in the US were skeptical about responding. Popular US crypto firm Coinbase was among the foremost to respond, asking the regulators to give more time for such responses. They asked for 60 days.
Eight US legislators also backed Coinbase and other crypto firms with their letter demanding more time.
The letter addressed to US Treasury Secretary Steve Mnuchin and FinCEN Director Kenneth Blanco stated that the new rules’ complexities require more time for these firms to respond.
As Coinbase demanded, the legislators asked for an extension within 15 days to 60 days so that “stakeholders have a meaningful opportunity to evaluate how the proposed rule will impact their business and customers.”
US Legislators align with FinCEN despite demand
In their letter, the US legislators also aligned themselves with the regulators, noting that they know the significance of such legislation and its potential impact on the industry and the American people.
They said they share FiNCEN’s goal of protecting national security and supporting law enforcement in their efforts to combat criminals ready to engage in money laundering, illicit financing, and other criminal activity.
The legislators are: Reps. Tom Emmer, David Schweikert, Warren Davidson, Ted Budd, Bill Foster, Darren Soto, Suzan DelBene, and Tulsi Gabbard, and US Senator Tom Cotton recently made the same request.
