December 16th, 2020 

The Honorable Steven Mnuchin 

Secretary of the Treasury
U.S. Department of the Treasury
1500 Pennsylvania Ave., NW
Washington D.C. 20220

Dear Secretary Mnuchin,  

We are writing on behalf of the Global DCA, its members, and the other industry participants  listed below. This letter is 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. In general, agencies such as Treasury are required to publish a proposed rule  which is subject to public comment and, after consideration of the diverse perspectives, a final  rule is published. However, if an agency believes there is “good cause,” it can issue an “interim  final” rule where it holds a post promulgation comment period. An interim final rule is effective  immediately upon publication and it may be modified, but only if Treasury is persuaded by any  of the comments.  

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. Public comment, particularly in a new and complex area technology such as digital assets, offers  the opportunity for all stakeholders, not just lawmakers, to participate in the drafting and refining  of laws. The transparent character of our rulemaking process is one that distinguishes our country  from others.  

The industry would like to work with the regulators to help shape suitable regulation that is fitted  to the evolving state of technology. FinCEN, OCC, LabCFTC and the SEC’s Strategic Hub for  Innovation and Financial Technology (FinHub) – which recently became a standalone office – are  examples of partnership and engagement of this front, helping to oversee the developments of  standards while our regulations evolve to meet this new market’s needs.  

 We are concerned about the unintended consequence of bifurcating an already fragmented  market and driving more actors into areas that are difficult to trace. On behalf of that growing  industry, we ask that you postpone any short-term restrictions on the crypto market that may  limit our global, long term opportunities. 

We are also deeply concerned about the potential publication of this IFR and the possible  unintended consequences for American businesses – especially with regard to U.S. employment. 

Close to 1/4 of cryptoasset firms have sustained an annual growth in employment level above  10% (between 2016-2019) qualifying them as “High Growth Companies.”1 As such, the industry  offers significant opportunity for job creation, financial sector development and economic  growth for the U.S.  

Further, we are keenly aware of the geopolitical issues surrounding the industry, and the need  for thoughtful leadership. As a part of the consideration of any upcoming rules or regulations, we  strongly urge an open and inclusive discussion on the global security concerns and potential for  ramifications to the U.S. standing in the emerging global digital economy.  

We are extremely respectful of regulations and we each hold the core principle of consumer  protection and protection of the broader public. We would like to have the opportunity to meaningfully comment on any proposed rules that Treasury is considering. We have exceptional  contributors from throughout the digital asset industry, and we would like to help in any capacity  we can. We are 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.  

Respectfully yours,  

Tony Pettipiece 

Board Member and Chair of the Policy & Regulation Committee, Global-DCA Co-Signatures 
Ariana Pretto-Sakmann, General Counsel, Genesis Global Trading
Annemarie Tierney, Principal, Liquidity Advisors, Inc.
David Brill, Principal, Brill Advisors
Jonathan Johnson, CEO, Overstock.com
Kristin Boggiano, President, CrossTower, Inc.
Igor Telyatnikov, CEO, AlphaPoint
Gabriella Kusz, Board of Directors, Global Digital Asset & Cryptocurrency Association Ben Van Vliet, Associate Professor, Director of the Center for Strategic Finance @ IIT Stuart  School
Jonathan Johnson, President, Medici Ventures
Andrew Yeung, General Counsel, Paxful, Inc.
Stephen Gardner, CCO and General Counsel, Zero Hash LLC
James Morgan, General Counsel, BitGo
Alan Konevsky, Chief Legal Officer, tZERO Group, Inc.

1 Cambridge Center for Alternative Finance, University of Cambridge Judge Business School, “3rd Global Cryptoasset  Benchmarking Study.” https://www.jbs.cam.ac.uk/faculty-research/centres/alternative-finance/publications/3rd global-cryptoasset-benchmarking-study/

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.

Share