December 4, 2020

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US Treasury Secretary Steven Mnuchin: New Cryptoregulations and “Major Requirements” are Coming!

2 min read
US Treasury Secretary Steven Mnuchin: New Cryptoregulations and "Major Requirements" are Coming!

Regulation of the cryptocurrency sector and related digital currency projects is being discussed at the highest points in the US. From what Steven Mnuchin says, the US is still in a state of struggle against the crypto.

 

Mnuchin about regulations

 

Yesterday, the US Senate held a hearing to cover the 2020 budget. The discussion also turned towards cryptocurrencies.

 

New Senator Maggie Hassan of Hampshire asked how the Treasury department would deal with suspicious cryptocurrency transactions. She continued her question by asking whether there would be a way to prosecute criminal organizations using cryptocurrencies to finance their illicit activities.

 

Us Secretary of the treasury Steven Mnuchin shares her concern. He replied that there would soon be new regulation. Features:

 

“Specifically, we spend a lot of time on cryptocurrencies, both on agency bases and with regulators. We are going to introduce some important new requirements in FinCEN. We want to ensure that technology moves forward, but on the other hand, we want to ensure that cryptocurrencies are not used as equivalent to old Swiss secret bank accounts. ”

 

About stablecoins and CBDC

 

The Financial Crime Enforcement Network (FinCEN) operates directly under the Treasury department. It collects information on domestic and international financial illicit activities and analyzes various types of financial transactions.

 

Mnuchin, who, together with FinCEN, wants to combat alleged crypto-crimes, has also spoken of stablecoins and CBDC. According to him, it is necessary to find out where each transaction goes and that it is not used for money laundering. However, Stablecoins also have advantages. He stated:

 

“We believe that technology can significantly reduce payment processing time. Especially for cross-border small dollar payments. “

 

Regarding the central bank’s digital currency (CBDC), Mnuchin believes that the US does not have to consider it at all. He stressed that Jerome Powell, Chairman of the Federal Reserve (FED), shared his view on the matter.

 

Summary

 

Mnuchin indicated during the budget discussion that there were some new demands or regulations that would focus on cryptocurrencies. According to him, it is necessary to track every cryptocurrency transaction. If we look at it in the context of a familiar saying: “they ignore you first, then they laugh at you, then they fight with you and then you win,” the cryptocurrencies in the US are probably in the “fight” phase.

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