Tax officials speak out in favor of further crypto regulations


The wave of regulation in the USA continues. In a US committee, high-ranking, designated tax officials spoke out in favor of further crypto regulations.

Since US President Joe Biden took office in January, the personnel carousel in the US has been busy turning. The Ministry of Finance is also affected. Two hot candidates for high-ranking positions have been traded there since mid-March. On the one hand, Brian Nelson, who Under Secretary in the Terrorism and Financial Crime Department, and on the other hand Elizabeth Rosenberg, who is designated Assistant Secretary will be responsible for combating the financing of terrorism.

Nelson and Rosenberg were to one yesterday Senate Finance Committee loaded, whereby both have clearly spoken out in favor of further crypto regulations in the USA. When Nevada Senator Catherine Cortez Masto asked for specific ways to limit the damage from crypto crimes, Nelson referred to the Anti-Money Laundering Act. This is a law that came into force last year and that Financial Crimes Enforcement Network (FinCEN) with the introduction of new regulations. In addition, the Bureau of Terrorist Financing and Financial Crime must work with its international partners to tackle crypto crimes. Nelson added:

Once confirmed, I will prioritize the implementation of parts of this legislation, including new regulations related to cryptocurrencies. This legislation created new powers whereby cryptocurrencies or currencies in any form, be they virtual or fiat, are covered by the Bank Secrecy Act (BSA).

Brian Nelson compared to the United States Senate

“Crypto rules must apply to all jurisdictions”

Rosenberg also called for more international cooperation before the committee. In addition, she wants to work to establish “consistent and suitable rules” across different jurisdictions.


Without this kind of collaboration and regulatory framework, it is all too easy for criminals to circumvent US jurisdiction and conduct their illegal activities from other jurisdictions.

Elizabeth Rosenberg to the US Senate

At the same time, however, both tax officials agreed that overregulation could lead to an exodus of crypto companies from the US.

These regulations must have a balance. On the one hand, we must prevent virtual currencies and other types of new technologies from undermining our AML system. On the other hand, we have to support responsible innovations in order to preserve them here in the USA. Otherwise we will have to watch them leave the country.

Brian Nelson to the US Senate

USA tightening regulatory thumbscrews

Meanwhile, more and more state institutions are demanding more funds and better regulations in order to be able to keep up in the fight against financial crime. The US Treasury Department presented a report just last month calling for new reporting requirements for banks and crypto exchanges. The Internal Revenue Service (IRS) called for a budget increase of $ 1.2 billion in its planning report in order to better prosecute tax crimes. In addition, the tax authorities asked the US Congress to expand their powers to collect transaction data.

The reasons for further regulations are always prayed down like a mantra: money laundering, terrorist financing, tax evasion. The shows that the fear of an increase in these crimes is unfounded Crypto Crime Report from the analysis company Chainalysis. According to this, only 0.34 percent of all crypto transactions were of a criminal nature in 2020.