Congressman Warren Davidson Rails Against Treasury’s ‘Red Herring Arguments’ On Crypto

Warren Davidson, Vice Chairman of the Subcommittee on Digital Assets, Financial Technology, and Inclusion of the House Financial Services Committee, has rejected the policy suggestions made by the U.S. Treasury on crypto assets, stating these seek to ban digital assets in the U.S. using unworkable compliance requirements as tools for this task.

Warren Davidson Qualifies U.S. Treasury’s Crypto Policy Proposals as ‘Dishonest’

Warren Davidson, Vice Chairman of the Subcommittee on Digital Assets, Financial Technology, and Inclusion of the House Financial Services Committee, rejected the policies presented by the U.S. Treasury to regulate crypto assets. In a recent opinion post titled “Setting the record straight and debunking unworkable illicit finance proposals,” Davidson explains that these suggestions, very similar to the proposals presented by Sen. Elizabeth Warren, seek to disarm the cryptocurrency industry in the U.S.

The suggested policies would classify wallet providers, miners, validators, and other network participants as a new group of crypto financial institutions, subject to the same reporting standards that traditional finance institutions do.

Davidson explains that Sen. Warren’s allegations indicating even validator node operators “pose national security concerns” show a degree of ignorance “unbecoming of any policymaker.”

On the objective of these measures, he stated:

It’s an attempt to capitalize on others’ ignorance by pursuing a backdoor pathway to effectively ban digital assets in the United States through a crushing and entirely unworkable compliance burden.

Furthermore, Davidson stresses that blockchain and cryptocurrency are not the preferred methods for terrorism financing, given that recent media reports incorrectly pointed out that the terrorist group Hamas had raised over $93 million in digital assets. He claims this notion has been used to push this kind of policy that seeks to dismantle the future of the crypto industry in the U.S.

Davidson argued that the first measure to combat illicit movements in crypto should be to bring more crypto companies to the U.S., a goal that will be difficult to fulfill if these policies get approved. “Their purposefully unworkable framework will drive companies and capital offshore,” he concluded.

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