US lawmakers ask Treasury to clarify digital assets -Punchbowl News

Signage is seen at the headquarters of the U.S. Treasury Department in Washington, DC, U.S., August 29, 2020. REUTERS/Andrew Kelly/File Photo

WASHINGTON, Jan 27 (Reuters) – A bipartisan group of U.S. lawmakers has called on the Treasury Department to “clarify the digital asset ecosystem” after related new reporting requirements were included in the $1 Trillion Infrastructure Act. dollars from last year, Punchbowl News reported Thursday.

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

“As nascent fintech grows, we must ensure that the demands placed on the digital asset ecosystem are both designed and implemented in a way that ensures the United States remains at the forefront of financial innovation,” said lawmakers, including Rep. 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 guidelines regarding cryptocurrencies and other digital assets in the coming days, according to Punchbowl.

Bloomberg News reported last week that the administration is preparing to release its initial government-wide digital asset strategy as early as February.

On Monday, US Deputy Treasury Secretary Wally Adeyemo told CNBC that new crypto-related rules would be coming soon.

Digital assets are managed by private actors, and some banking officials have urged US regulators to clarify what would be a regulated digital asset, including crypto.

US regulators have been watching the rapid growth of cryptocurrencies, fearing it could endanger the financial system if left unchecked. Top cryptocurrency company executives have urged against the tough restrictions.

In November, US President Joe Biden’s administration rolled back a Trump-era policy that allowed banks to provide crypto custodial services, with the Office of the Comptroller of the Currency telling banks they needed to. written permission from banking supervisors before engaging in cryptocurrency-related activities. including daycare services.

Written by Susan Heavey; Editing by Kirsten Donovan

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