U.S. Rep. Tom Emmer (R-MN) recently led a bipartisan, bicameral contingent of lawmakers in voicing concerns about the U.S. Treasury Department’s approach to establishing complex new rules for the recordkeeping and reporting of convertible virtual currency and legal tender digital asset transactions.
Specifically, Rep. Emmer and his colleagues think the department’s proposed rulemaking approach does not afford the American public a reasonable opportunity to respond, according to a Dec. 31 letter they sent to U.S. Treasury Secretary Steven Mnuchin.
“This is a highly complex rulemaking,” Rep. Emmer and the lawmakers wrote. “It would be impossible for the public to give meaningful comment with so little time, and a rushed process threatens the legitimacy of this rule. It also makes the new regulations very susceptible to legal challenges.”
The Financial Crimes Enforcement Network (FinCEN), a bureau within the Treasury Department, on Dec. 18 submitted a Notice of Proposed Rulemaking (NPRM) to the Federal Register to request comments on proposed requirements for certain transactions involving convertible virtual currency (CVC) or digital assets with legal tender status (LTDA).
Under the NPRM, banks and money services businesses would be required to submit reports, keep records, and verify the identity of customers in relation to transactions above certain thresholds involving CVC or LTDA wallets not hosted by a financial institution, or CVC/LTDA wallets hosted by a financial institution in certain jurisdictions identified by FinCEN.
Comments on the digital assets rule were scheduled to be received by Jan. 4, according to FinCEN.
However, Rep. Emmer and his colleagues have requested a 60-day comment period for public and stakeholder input on the rulemaking before it is finalized, and a potential delay of implementation to allow stakeholders to become compliant, according to their letter.
“The blockchain industry and cryptocurrency innovations are constantly and rapidly evolving,” Rep. Emmer said in a statement. “Government frequently struggles to keep up. We owe it to this community to be fair, transparent and open to stakeholder advice.”
The congressman noted that the request is simple: “allow additional flexibility for stakeholders to comment and advise our government on this proposal,” he said.
Among the eight other lawmakers who joined Rep. Emmer in signing the letter were U.S. Sen. Tom Cotton (R-AR) and U.S. Rep. Bill Foster (D-IL).