Several major players in the cryptocurrency industry, including Coinbase, Consensys, Paradigm, and others, have submitted letters to the U.S. Treasury's Financial Crimes Enforcement Network (FinCEN) expressing concerns about the proposed rules on crypto mixing. The proposed rules would require bulk data reporting and surveillance of transactions involving crypto mixers, which the industry argues would be invasive, ineffective, and overreaching. They emphasize the potential unintended consequences of broad definitions and ambiguities in the proposed rules, and call for more narrow and specific regulations to avoid stigmatizing legitimate crypto activity and causing damage to the ecosystem.
1/Yesterday, @a16zcrypto filed a comment letter to FinCEN responding to their “Proposal of Special Measure Regarding CVC Mixing as a Class of Transactions of Primary Money Laundering Concern.” 🧵 https://t.co/K2dx0R93NP
FinCEN’s proposed rule on mixing services could stigmatize legitimate crypto activity, Blockchain Association says https://t.co/QM8kOrJb50
We submitted a comment letter to @FinCENnews - While we support anti-illicit finance efforts, we're very concerned with the proposed "CVC mixing" reporting. Broad definitions and ambiguities can lead to unintended consequences. https://t.co/Sqo1UXOWiz
I’ve been saying this for a while - policymakers are hyper-focused on crypto’s role in enabling illicit finance, prompting proposed legislation that is invasive, ineffective, and overreaching. Creative solutions that make it harder for bad actors to get their hands on these funds… https://t.co/xpjgTUJbIn
ICYMI: Coinbase urges US Treasury to reconsider bulk data reporting in proposed crypto mixing rules https://t.co/9i7u9TAoZS
Coinbase, Consensys, and Paradigm Call on U.S. Treasury to reconsider its proposed reporting requirements for crypto mixer transactions, highlighting resource and specificity Issues https://t.co/BoNrrJusSG
📣 Latest News: Coinbase, Paradigm, others argue crypto mixer rules are a ‘waste of time' #news #cryptonews #crypto
Coinbase urges US Treasury to reconsider bulk data reporting in proposed crypto mixing rules https://t.co/SO63eLY3LA
Today, @Consensys submitted a letter to FinCEN concerning its proposal to have regulated financial intermediaries surveil and report activity relating to crypto token mixers. TLDR: if this has to happen, then please make it narrow enough not to do real damage to the ecosystem… https://t.co/0ESJyRQJaG
We filed comments today on @USTreasury’s proposed rule on crypto mixing. @coinbase supports effective regulations, but not bulk data collection and reporting requirements for all transactions involving any crypto mixing–even with no indication of suspicious activity. 1/6
1/ Today, @BlockchainAssn submitted a letter in response to @FinCENnews's NPRM re: mixers. The Proposal is FinCEN’s 1st ever use of § 311 authority to designate a class of transactions as a primary money laundering concern. This is a big deal. 🧵 https://t.co/ZQtgehe8tt
Proud of @LeXpunK_Army's efforts here explaining why it is unhinged to create a regulatory presumption that all on-chain transactions are done in furtherance of crime as a means to purportedly fight money laundering. https://t.co/A0GdYby9Pk