President Trump has recently released his budget proposal, if he were to be re-elected, for 2021. The latter focused on cryptocurrencies, especially from the prevention of illicit activities perspective.
In order to do so, President Trump proposes that the Secret Service re-joins the Treasury Department after it has been relocated to the Department of Homeland Security.
Secretary of the Treasury, Steven Mnuchin, told the lawmakers that regulations are starting to get developed by the Treasury Department in cooperation with other agencies. Their objective is to improve and increase the transparency of digital assets and prevent them from being used for illicit acts such as money-laundering.
During a hearing at the Senate Finance Committee, Mr Mnuchin stated: “We are about to roll out some significant new requirements. We want to make sure that technology moves forward; on the other hand, we want to make sure cryptocurrencies aren’t used for the equivalent of old Swiss secret number banking”.
Only a short few years ago, cryptocurrencies were not well-regarded at all from governments. Today, that has developed into these parties viewing the actual benefit these could bring to people’s lives. It is very important that they want to ensure the “technology moves forward”.
Certain safeguards will certainly need to be implemented to regulate the asset class. However, public blockchains by nature allow anyone to access the transactions that took place and hence, in theory, they are a much worse alternative for illicit activities than fiat currencies.
Image Licensed via Pexels