Cynthia Lummis argues against Mnuchin rumours of harsh regulation on crypto wallets

Quick Take

1 minute read

• Stephen Mnuchin has been rumoured to drop a hefty piece of legislation in regards to the crypto industry before he leaves at the end of this year.

• As a result of the ruling, it could potentially have a big impact or even ban self custody digital asset wallets. 

Stephen Mnuchin, the secretary of the Treasury for the United States has been rumoured to drop a hefty piece of legislation in regards to the crypto industry before he leaves at the end of this year.

As a result of the ruling, it could potentially have a big impact or even ban self custody digital asset wallets. The United States Senator-elect, Cynthia Lummis has said that this ruling could be harmful to the future of the industry.

Taking to Twitter at the end of last week, Cynthia had a lot to say in a long Twitter thread.

I spoke with Secretary Mnuchin last week and strongly pressed him for a better path forward. Congress is best placed to weigh the competing policy issues at stake. A rule adopted now could also potentially extend the BSA to new types of transactions beyond Congress’ intent. (5/8)

— Cynthia Lummis (@CynthiaMLummis) December 18, 2020

The Wyoming-based Senator-elect isn’t the only government official who has expressed their concern over this legal news. Several members of Congress have also resisted the thought of such a ruling. Even the chief executive officer of the Coinbase platform, Brian Armstrong heeded a warning against the consequences of such a change to regulation.

For those who don't know - self-hosted crypto wallets (also known as non-custodial wallets or self-custody wallets) are a type of software that lets individuals store and use their own cryptocurrency, instead of needing to rely on a third party financial institution.

— Brian Armstrong (@brian_armstrong) November 25, 2020

Cynthia went on to add:

I am deeply concerned that the Treasury Department is considering a hasty rule governing self-hosted digital asset wallets and the Bank Secrecy Act (BSA). (2/8)

— Cynthia Lummis (@CynthiaMLummis) December 18, 2020

She goes on to make the argument that by holding back the landscape for crypto wallet, it could slow down the United States as it races against countries such as China in the advancement of technology within the crypto space. The country has already fallen behind when it comes to central-bank digital currency projects so maybe it would be a good idea to help further advance the crypto sector within United States regulation.

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