Representative from North Carolina Ted Budd believes that the abolition of rules that restrict the US Treasury Department in its ability to regulate financial transactions will reduce the country’s competitiveness.
US Republican MP Ted Budd
introduced amendment to the American Competition Act of 2022 Consolidated Draft, which allows the US Department of the Treasury to impose “special measures”, including oversight and outright bans on certain financial transactions, including cryptocurrencies.
Earlier, chairman of the cryptocurrency advocacy group Coin Center, Jerry Brito, drew attention to the provision presented by Connecticut MP Jim Himes. The document allowed for the abolition of existing procedures, such as the requirement for public consultations and temporary restrictions on orders for special measures that limit the right of the US Department of the Treasury to unilaterally prohibit financial transactions.
According to the CEO of Coin Center, if the regulation is passed in its current form, it will deal a major blow not only to the crypto industry, but also to “privacy and due process in general.”
“The Ministry of Finance should not have unilateral powers to make sweeping economic decisions without proper rule-making. This draconian position will not help America compete with China, it will use China’s autocratic scenario to stifle financial innovation in our own country.”
Congressman Ted Budd
supported this argument in a statement where he criticized this approach to the regulation of fintech and cryptocurrencies in the United States. Budd tweeted that this was a “serious mistake”.
Incorporating new rules that could negatively impact the crypto industry into multi-page “mandatory” pieces of legislation is a practice that first gained attention in 2021 when the highly controversial definition of “digital asset” and “digital asset broker” was added without public comment to Law on Investment in Infrastructure and Employment.
The focus here is on the America’s Competition Act of 2022, which aims to fix supply chain problems to keep the U.S. manufacturing and technology sectors internationally competitive. However, the multi-page bill also includes a host of seemingly unrelated spending measures and authorizations, including a ban on the sale of shark fins, anti-harassment measures in science, and new commitments for online marketplaces.
The US Treasury does not consider cryptocurrencies a threat to the dollar, largely due to the approval of the Infrastructure Act, but is ready for their strict regulation. U.S. Deputy Treasury Secretary Wally Adeyemo said last year that the dollar will remain the dominant currency in the world, despite the development of cryptocurrencies and the emergence of central bank digital currencies. He is confident that the infrastructure bill, which implies tightening rules for cryptocurrency companies and expanding reporting requirements for brokers, will help unlock the potential of the US economy and strengthen the dollar’s position. A month earlier, Treasury Secretary Janet Yellen proposed a tax on unrealized capital gains that would force investors to pay for the growth of cryptocurrencies, even passively in the wallet.
Source: Bits
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
