4 months ago
Two US lawmakers person opposed the Department of Justice’s (DOJ) effort to grow the explanation of a money-transmitting business.
In a May 9 letter to US Attorney General Merrick Garland, Senators Cynthia Lummis and Ron Wyden argued that the DOJ’s wide mentation could criminalize non-custodial crypto plus bundle services.
According to the lawmakers:
“The DOJ’s unprecedented mentation of this statute successful the discourse of non-custodial crypto plus bundle services contradicts the wide intent of Congress and the authoritative guidance of the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).”
DOJ’s argument
In April, the DOJ argued that the crypto mixer functioned arsenic an unlicensed wealth transmitter arsenic its rebuttal to Tornado Cash’s developer Roman Storm’s motion for dismissal.
In its motion, the DOJ argued that controlling funds was not a prerequisite for specified classification. According to the Justice Department:
“The explanation of ‘money transmitting’ successful Section 1960 does not necessitate the wealth transmitter to person ‘control’ of the funds being transferred. The explanation exends to ‘transferring funds connected behalf of the nationalist by immoderate and each means.”
Congress intent
The lawmakers judge that the DOJ’s presumption was incorrect arsenic Congressional intent for the instrumentality requires that a institution indispensable person “direct receipt and power of assets” to suffice arsenic a money-transmitting business.
The lawmakers besides cited the Bank Secrecy Act and respective FinCEN regulations to enactment their statement against the DOJ’s stance.
The senators besides stated :
“Non-custodial crypto work providers cannot beryllium classified arsenic wealth transmitter businesses due to the fact that users of specified services clasp sole possession and power of their crypto assets.”
The lawmakers urged the DOJ not to divert “from the clear, logically sound, and well-established explanation of “money transmission” established by FinCEN.” They added:
“Subjecting developers of non-custodial crypto plus bundle to imaginable transgression liability arsenic unregistered wealth transmitters contravenes the well-established mentation of this proviso and volition lone service to stifle innovation and shingle assurance successful the DOJ’s respect for the regularisation of law.”
The station US senators situation DOJ’s wide explanation of crypto wealth transmitters appeared archetypal connected CryptoSlate.
English (US) 