An Open Letter to the Honorable Steven Mnuchin
A signed copy was sent to the Treasury Secretary Steven Mnuchin.
December 11, 2020
The Honorable Steven Mnuchin
Secretary of the Treasury
U.S. Department of the Treasury
1500 Pennsylvania Ave., NW
Washington D.C. 20220Dear Secretary Mnuchin,
CrossTower is writing in reference to the letter by Reps. Warren Davidson (R-Ohio), Tom Emmer (R-Minn.), Ted Budd (R-N.C.), and Scott Perry (R-Penn.) dated December 9, 2020 to the Department of the Treasury. In this letter, the members of Congress ask Treasury to consult with Congress before issuing new regulations that restrict the use of digital self-hosted wallets.
In the event that Treasury is considering publishing an Interim Final Rule (IFR), we request that you reconsider. An IFR becomes effective upon publication without public comment on the rule’s substance.
The wonderful aspect of the regulatory framework in the United States is that it encourages public engagement during the rulemaking process, which improves the quality of our regulations. The transparent character of our rulemaking process is one that distinguishes our country from others.
I’m deeply concerned about the potential publication of this IFR and the possible unintended consequences for American businesses. We launched CrossTower, a digital asset platform, last year. The executives on our team have years of experience at the most well-known regulated exchanges, hedge funds, asset managers, prop desks and broker-dealers. My team and I have been working around-the-clock to build a regulatory compliant platform. To the extent that compliance burdens are significantly increased or to the extent that we cannot technologically comply with the rule, it could have a serious adverse impact on CrossTower and multiple other industry participants that are shaping the digital asset industry.
We are extremely respectful of regulations and have a deep moral and ethical desire to ensure that we do not facilitate bad actors. We would like to have the opportunity to comment on any proposed rules that Treasury is considering. Our team has exceptional skills and experience in compliance in the digital asset industry, and we would like to help in any capacity we can.
CrossTower is kindly asking Treasury to follow the traditional rulemaking process that allows industry to provide input about the appropriate way in which regulations should develop in this young industry. We are immediately available to discuss these matters with Treasury.
Founder & President
CrossTower Inc. provides this content for general information purposes, to better inform you on your digital asset investment journey. We do not provide investment recommendations or provide tax advice. Please consult your investment professional or tax advisor if you require assistance in these areas.