U.S. lawmakers ask Treasury to clarify digital assets -Punchbowl News



WASHINGTON, Jan 27 (Reuters) - A bipartisan group of U.S. lawmakers has asked the Treasury Department for "clarity to the digital asset ecosystem" after new related reporting requirements were included in last year's $1 trillion infrastructure law, Punchbowl News said on Thursday.

In a letter dated Wednesday, the group told Treasury Secretary Janet Yellen that part of the bill was "ambiguous" because Treasury could interpret who within the digital asset ecosystem qualifies as a "broker" beyond what Congress intended, and urged against "a potentially expansive reading of the 'broker' definition."

"As nascent financial technologies develop, we must ensure requirements imposed on the digital asset ecosystem are both crafted and implemented in such a way to ensure the United States remains at the forefront of financial innovation," the lawmakers, including Representatives Patrick McHenry, a Republican, and Tim Ryan, a Democrat, wrote.

Reuters could not immediately confirm the report, which comes as the Biden administration is expected to unveil preliminary guidance regarding cryptocurrencies and other digital assets in coming days, according to Punchbowl.

Bloomberg News last week reported the administration was preparing to release its initial government-wide digital assets strategy as soon as February.

On Monday, U.S. Deputy Treasury Secretary Wally Adeyemo told CNBC new crypto related rules were coming soon.

Digital assets are run by private actors, and some bank officials have urged U.S. regulators to clarify what would be a regulated digital asset, including crypto.

U.S. regulators have been eyeing the rapid growth of cryptocurrencies over concerns it could put the financial system at risk if left unchecked. Top cryptocurrency company executives have urged against tough restrictions.

In November, U.S. President Joe Biden's administration reversed a Trump-era policy that gave banks permission to provide crypto custody services, with the Office of the Comptroller of the Currency telling banks they need written permission from bank supervisors before engaging in cryptocurrency-related activities, including custody services.
Writing by Susan Heavey; Editing by Kirsten Donovan

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.