U.S. Legislators caution against regulations restricting the use of Self-contained Crypto Wallets

Four US law-makers have sent a letter to Treasury Secretary Steven Mnuchin warning of the risks of limiting the use of self-sufficient cryptocurrency wallets. Their concerns come following reports that the Treasury Department could be about to enforce such stringent cryptocurrency regulations aimed at self-sufficient crypto wallets.

Crypto Regulations That May Make Existing Consumer Owners Of Wallet Wallets

United States Congressmen Warren Davidson, Tom Emmer, Ted Budd, and Scott Perry sent a letter to Treasury Secretary Steven Mnuchin on Wednesday outlining their “concern over reports that the Treasury Department is considering issuing regulations that would restrict the use of self-sustaining wallets.”

The legislators warned that if the planned regulation “requires a company to specify the owner of a self-sustaining wallet, with which the company’s consumers want to negotiate, then Americans’ use of digital asset transactions would be significantly disadvantaged by worldwide. competitors. ”They further noted that” such a regulation could undermine the Treasury Department from preventing illegal actors from taking advantage of the financial system, “adding:

The regulation considered would not meaningfully support law enforcement, while raising privacy concerns and imposing unenforceable regulatory burdens on consumers and digital asset companies.

The letter goes on to explain the benefits of using self-contained wallets. “Removing the middle man by using self-sustaining wallets means that consumers can maintain privacy and negotiate freely, which is vitally important as individuals increasingly conduct their financial lives digitally,” wrote Congressmen. In comparison, they pointed out that “such freedom is very different from China’s digital yuan, where citizen transactions are supervised and transactions involving disadvantaged individuals or activities can be censored.”

Furthermore, the letter highlights that while “private transactions between two parties can be exploited for unlawful purposes, the reality is that this same vulnerability exists with cash,” emphasizing that “multiple reports have show that illegal actors are not widely used by illegal actors. . ”The legislators then questioned:

Many people already have self-sustaining wallets, as they are currently legal, legally used, and quickly adopted. Regulation, as reported, could effectively make these individuals criminals. What would happen with their assets?

On the anti-money laundering (AML) or customer requirements (KYC) requirements, the letter suggests that “there should be regulatory parity between the traditional financial system and the digital asset ecosystem.”

In conclusion, the legislators asked the Treasury Department to “consult Congress and industry stakeholders before taking any decisive action,” and asked the department to provide “details of any proposal currently being considered and an explanation of its logic. ”

Do you think the US will restrict the use of self-sufficient crypto wallets? Let us know in the comments section below.

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