Nominees for financial crimes positions at the US Treasury Department say that, if confirmed, they will establish new regulations and strict KYC requirements for cryptocurrencies and digital assets.
This Tuesday, during a hearing of the Senate Committee on Banking, Housing and Urban Affairs from United States, Brian Nelson y Elizabeth Rosenberg, nominated by the American president Joe Biden to hold positions against financial crimes in the Treasury Department, announced new regulations and strict KYC (Know Your Customer) requirements for the growing industry of cryptocurrencies, .
During the hearing, Nelson and Rosenberg stated that regulation of the crypto industry has become a high priority issue for the country, aligning with pronouncements made by other US regulators in recent days.
According to the statements, if the nominees are confirmed in the proposed positions, then they will promote the implementation of new regulations to prevent cryptocurrencies, and the risks they bring, from undermining existing laws in the country.
Brian Nelson was nominated by the president of the nation for the position of Undersecretary of Terrorism and Financial Crimes, the Committee reported in its Press release. For her part, Elizabeth Rosenberg was nominated to be the new Undersecretary for Terrorist Financing. Both positions are assigned to the United States Department of the Treasury.
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New regulations for cryptocurrencies
One of the most notable pronouncements of the nominees during the Banking Committee hearing was the Anti-Money Laundering Act of 2020. Nelson noted that the law known as the AML Act, passed in 2020, will be one of the pillars of the new regulations for cryptocurrencies.
This law includes several regulatory elements that apply to cryptocurrencies and that will help the financial regulator combat financial crimes that may be committed with these assets, such as money laundering and tax evasion.
“If confirmed, I will prioritize implementing pieces of that legislation, including new cryptocurrency regulations.”Nelson said during the hearing. For his part, Rosenberg emphasized the need to redesign KYC controls and requirements to prevent criminals from hiding from the authorities. The nominee for Undersecretary of Terrorist Financing said she will make KYC requirements more appropriate and consistent with the regulator's goals.
United States more interested in crypto regulation
American regulators are increasingly interested in cryptocurrencies and digital assets. Recently, the chairwoman of the Financial Services Committee of the United States House of Representatives, Maxine Waters, announced the creation of a working group to monitor the cryptocurrency market and all its implications.
On the other hand, the new director of the Office of the Comptroller of the Currency (OCC), Michael Hsu, noted that US regulators must collaborate in creating a new regulatory framework for cryptocurrencies and digital assets. According to their statements, the country's regulators are paying more attention and taking a greater role within the crypto industry, so they must also participate and collaborate in the creation of new regulations and legislation.
Even the current chairman of the United States Securities and Exchange Commission (SEC), --Gary Gensler, has said that the financial regulator will work with other departments to fill the gaps that exist in the crypto industry and that leave investors and users unprotected. Gensler emphasized ecosystems DeFi, pointing out It is an innovative but highly volatile market full of innovative products that can create new challenges for investors and regulators in the country. In addition to this, Gensler reported that the SEC is seeking comments on regulations focused on the custody of crypto assets and the tokenization of stocks in blockchain.
The Treasury Department is not far behind in its goals of regulating the cryptocurrency industry. Janet Yellen, current Secretary of the Treasury, has said that she will impose new rules to exercise greater surveillance and control over commercial and financial activities with cryptocurrencies. Yellen sees cryptocurrencies as Bitcoin a tool for criminals, facilitating tax evasion and other financial crimes.
As we see, several of the United States financial regulators are dedicating greater efforts to more consistent crypto regulation.
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