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Brian Nelson, President Joe Bidens’ candidate for Deputy Secretary of the Treasury Department’s Terrorism and Financial Crimes Division, said he would prioritize the implementation of new cryptocurrency regulations .
In a hearing Tuesday with the Senate Committee on Banking, Housing and Urban Affairs, Nelson said he would focus on anti-money laundering regulations, or AML, if confirmed for the position at the within the Treasury, Terrorism and Financial Intelligence Departments. arm, adding cryptocurrency would be a particular priority.
Responding to a question from Nevada Senator Catherine Cortez Masto regarding the damage caused by crypto burglaries, Nelson said the anti-money laundering law of 2020 reflects the increased ability of regulators to prevent cryptocurrencies from being released. undermine existing laws. However, he hinted that the creation of crypto was also part of “responsible innovation” in the United States.
If confirmed, I will prioritize implementing elements of this legislation, including new cryptocurrency regulations, Nelson said. I believe the legislation has provided new authorities or clarified the law that cryptocurrencies or currencies in any form, whether virtual or fiat, are covered by bank secrecy law.
The Financial Crimes Enforcement Network, or FinCEN, operating within the Treasury Department, has previously used the Bank Secrecy Act, or BSA, to apply to cryptocurrencies in some cases, although the legislation was passed in 1970. Nelson said the BSA is a powerful tool for FinCEN to ensure that whatever form of currency it has the tools to regulate.
This reflected a balance between regulation to prevent virtual currency and other types of new technology from undermining our anti-money laundering system while respecting the fact that we need to support responsible innovation and preserve it here at. United States.
At the same Senate hearing, Elizabeth Rosenberg, Bidens’ candidate for Deputy Secretary for Terrorist Financing in the Treasury Department, said she would seek to make current regulatory requirements for combating money laundering. appropriate and consistent. Janet Yellen, the current Treasury Secretary, previously called the cryptocurrency of particular concern to AML, adding that she believed it was “primarily for illicit financing.”
Related: Treasury Secretary Candidate Says Crypto Has Potential To Improve Financial System
FinCEN proposed regulations earlier this year that would consider transactions of convertible digital currencies or digital assets subject to similar anti-money laundering and terrorist financing requirements. Last month, the Treasury Department also called on exchanges and custodians to report crypto transactions over $ 10,000 to the Internal Revenue Service.
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