President Biden’s candidate will prioritize crypto regulation

President Biden nominated Brian Nelson and said he would push for implementation of the 2020 Anti-Money Laundering Act, which includes new regulations for cryptocurrencies.

Brian Nelson, nominated by President Joe Biden as deputy director of the Treasury Department’s Counter Terrorism and Financial Crime Division, said he would give priority to implementing new crypto regulations.

During a hearing for the Senate Banking, Housing and Urban Development Committee on June 22, Nelson said his focus was on anti-money laundering (AML) regulations. Hence, the adoption of cryptocurrency regulations will be a top priority when he is appointed part of the Treasury Department’s Counter Terrorism and Financial Information Division.

When asked by Nevada Desk Senator Catherine Cortez Masto about “the harm caused by cryptocurrency thieves,” Nelson said the 2020 Anti-Money Laundering Act reflects the authorities’ ability to govern governance aimed at preventing cryptocurrencies from doing so to circumvent existing laws. However, he also indicated that the creation of cryptocurrencies is part of a “responsible innovation” in the US.

“If I am appointed, I will prioritize the implementation of parts of this law, including new crypto regulations.” – Brian Nelson said.

“I think the legislation has created new powers – or clarifications to the law – that cryptocurrencies or currencies of any kind, whether virtual or fiat, are subject to banking secrecy regulation.” Mr Nelson continued.

The Financial Crimes Enforcement Network (FinCEN), which reports to the Treasury Department, previously used the Bank Secrecy Act (BSA) to apply to cryptocurrencies in certain circumstances, despite the fact that the law was passed in 1970. Nelson said the BSA is “a powerful tool that FinCEN can use to ensure they have the tools to regulate regardless of their currency.

“It reflects a balanced regulation to prevent cryptocurrencies and other emerging technologies from undermining our anti-money laundering system. At the same time, it also respects the fact that we have to support innovations responsibly and ensure that it stays that way in the USA. “

Speaking at the Senate hearing, Elizabeth Rosenberg, President Joe Biden’s nominee for Deputy Secretary of Terrorism Financing at the Treasury Department, said she would consider making regulatory inquiries about current AML regulations on cryptocurrencies in an “appropriate and consistent” manner . Janet Yellen, the current Treasury Secretary, previously described cryptocurrencies as a “special concern” for AML. The minister added that in her opinion it was “primarily intended for illegal financing”.

FinCEN proposed regulations earlier this year that take into account convertible digital currencies or transactions in digital assets that are subject to similar anti-money laundering and counter-funding requirements. In May 2021, the Treasury Department also asked exchanges and custodians to report cryptocurrency transactions over $ 10,000 to the Internal Revenue Service, as reported by CoinCu.

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