Cryptocurrency companies and associations are calling on U.S. authorities to change their approach to money transmitter regulations. They believe that current rules, applied too strictly, stifle innovation and could have harmful consequences for the entire ecosystem.
Regulation deemed inadequate
- A definition too broad: Regulators currently consider many crypto players to be “money transmitters,” which subjects them to burdensome and sometimes inappropriate obligations.
- A hindrance to innovation: Companies in the sector believe this classification does not take into account the specificities of blockchain technology and imposes restrictions that limit the development of new solutions.
An ongoing regulatory battle
- Tensions with authorities: Regulators, notably the DOJ and the Financial Crimes Enforcement Network (FinCEN), remain cautious about the risks associated with cryptocurrencies, particularly with regard to money laundering and illicit financing.
- A Necessary Dialogue: Industry stakeholders are calling for a more appropriate legal framework that would protect consumers while allowing the industry to grow in the United States.
Opportunities and Risks of Regulatory Reform
Opportunities:
- A more favorable legal environment for innovation in crypto.
- A greater attractiveness of the United States for companies in the sector.
Risks:
- A potential loosening of controls on illicit financial flows.
- Opposition from regulators that could slow any reform.
Conclusion
The call for a review of the regulations on money transmissions by crypto companies illustrates the growing tensions between technological innovation and the legal framework. A balance must be found to allow the sector to grow while meeting security and financial compliance requirements.
