US Representatives Want Deadline Extension For Crypto Rule

Some members of the US Congressmen have asked the Treasury Department to extend the deadline for its proposed new crypto rule.

The Treasury Department wants to pass a new crypto law that will require crypto exchanges to use a more rigorous Know-Your-Customer (KYC) regulation on users for blockchain nodes and self-hosted wallets.

Crypto exchanges also oppose the deadline

The group was led by Rep. Tom Emmer, who wrote to U.S. Treasury to extend the deadline to allow more users to participate in the comment section.

This is coming a few days after top crypto exchanges asked users to voice their opinion on the comment section of the proposed rule on the Treasury Department’s website. The exchanges have alerted the crypto community that the deadline for comments was unusually too short if the regulators want to include users’ participation.

The proposed new rule made in a haste

The crypto community and other stakeholders in the sector have faulted the quick decision by the regulators to enact a crypto rule without following due process. According to the complaints, users who these rules will be affected should be given enough time to voice their concerns about the new rule.

When the Financial Crimes Enforcement Network (FinCEN) issued the proposed rule change on December 23, it gave until January 4 as the deadline for users to participate.

Congressmen said the initial deadline is too short

The entire crypto industry opposed the new rule, citing restrictiveness and impracticability.

The congressmen feel that the 15 days initially given for the comment deadline was too short. They asked the regulators to extend the deadline to 60 days, which is the normal deadline for other similar proposed rules in the past.

The regulators, while proposing the new rule, stated that improving the KYC regulations have become very important for national security. The authorities also said the rule was also necessary to curb Money laundering activities.

Impossible to give a meaningful comment with little time

The congressmen also said that placing deadlines during the holiday period is too short for comments on a critical rule change.

“it would be impossible for the public to give meaningful comments with so little time,” the congressmen’s letter reads.

The congressmen reiterated that the 6 month period would give the users and crypto community ample time to respond to the comment request, which will help implement a better policy ideal for everyone.