Bipartisan Senators Challenge FinCEN’s Actions Against Crypto Mixers

Bipartisan Senators Challenge FinCEN’s Actions Against Crypto Mixers

Two Senators, Cynthia Lummis (R-Wyo.) and Ron Wyden (D-Ore.), have taken a stand against the Department of Justice (DOJ) and the Financial Crimes Enforcement Network (FinCEN) over their approach to lawsuits targeting crypto mixers.

Senators’ Concerns: In a letter addressed to U.S. Attorney General Merrick Garland and the DOJ, Senators Lummis and Wyden expressed concerns about FinCEN’s “unprecedented interpretation” of rules used to sue crypto mixers. They highlighted the potential violation of the First Amendment and raised questions about the legality of holding non-custodial crypto asset software developers liable for criminal activity.

Contradictory Interpretations: The Senators pointed out that FinCEN’s recent interpretation contradicted the actual meaning of the law. According to their bipartisan letter dated May 9, FinCEN’s view fails to recognize that a service must exercise control of the assets to qualify as a money transmitter under the provision.

Senator Lummis’ Perspective: Senator Lummis emphasized that blaming wallet software for illicit finance is akin to holding a highway responsible for a bank robber’s getaway car. She argued against penalizing developers for the criminal use of their software, highlighting the potential negative impact on innovation and technological advancement.

Crackdown on Crypto Mixers: The Senators raised concerns about FinCEN’s crackdown on crypto mixers, citing cases against platforms like Samourai Wallet and Tornado Cash. They questioned the DOJ’s methods and expressed reservations about the lack of clear digital assets policies in the United States.

Industry Response: Industry proponents echoed the Senators’ concerns, emphasizing that holding developers responsible for criminal activity could hinder technological progress. They urged policymakers to consider the broader implications of their actions and work towards clear and fair regulations for the crypto industry.

Conclusion: The bipartisan letter from Senators Lummis and Wyden underscores the need for clarity and fairness in regulating crypto assets. As the debate continues, stakeholders are hopeful for a balanced approach that fosters innovation while addressing concerns related to illicit finance.

Powered by Crypto Expert BD

Follow us on Twitter:

Join our Telegram channel:


No comments yet. Why don’t you start the discussion?

Leave a Reply

Your email address will not be published. Required fields are marked *