US lawmakers ask the Treasury Department to review the upcoming regulation of non-custodial wallets

Four members of the US House of Representatives have written a letter to Treasury Secretary Steven Mnuchin asking him to review the upcoming regulation of non-custodial cryptocurrency wallets.

Congressmen Warren Davidson, Tom Emmer, Ted Budd, and Scott Perry sent the letter
Steven Mnuchin( Steven Mnuchin), which “expressed concern” about the rumors about the upcoming regulation of non-custodial cryptocurrency wallets.

In late November, Coinbase CEO Brian Armstrong posted
a series of posts on Twitter and commented on rumors about a new regulation of non-custodial cryptocurrency wallets in the United States. He said the U.S. Treasury Department is hastily developing new rules, but did not disclose its source of information.

According to the congressmen’s letter, this potential regulation “will prevent the United States from leading in this area,” and will not allow American entities to participate in the work of the industry, as well as”prevent the Treasury Department from preventing fraudsters from working in the financial system.”

The lawmakers wrote that requiring cryptocurrency exchanges to store such a large amount of KYC data could also threaten user privacy. Rather, there should be “regulatory parity” between the traditional financial system and the cryptocurrency industry in the US. The letter says that introducing rules on non-custodial wallets could have the unintended effect of turning anyone currently using the wallet into a criminal.

In a statement posted online, Congressman Davidson said that ” before the Treasury Department issues regulations on non-custodial wallets, Mnuchin should come to the U.S. Congress and talk to lawmakers about how these rules will work.”

“Over-regulation of non-custodial wallets will overwhelm the nascent industry and leave the United States behind the rest of the world when it comes to harnessing the power of blockchain and cryptocurrencies,” he added.

This is the second letter that lawmakers have sent this week. Nine members of the House of Representatives of the US Congress also sent a
letter to SEC Chairman Jay Clayton (Jay Clayton) with a request to clarify the regulation of cryptocurrency broker-dealers.