The venture capital firm has harshly criticized US regulators’ recent attitude to crypto.
Major venture capital firm Andreessen Horowitz, also known as A16z, was the latest crypto-related company in the United States to oppose a recently proposed regulation.
Take a break
According to a blog post by A16z general partner Kathryn Haun, the Financial Crimes Enforcement Network published “a rushed, unexamined rule that breaches the government’s own established rule-making procedures by taking the break”.
FinCEN, operating under the authority of Steven Mnuchin’s Treasury Department, proposed a regulation late last month that would restrict the money services business, as well as US-registered cryptocurrency exchanges from trading with “self-hosted” wallets.
Effectively, the new regulation will “require customers of various cryptocurrencies to collect and report detailed personally identifiable information of counterparties.”
Haun stated that this standard “does not apply to any other sector of the financial industry today”.
In addition to failing to solve any of the problems he is considering addressing, Haun says the rule violates the fourth amendment of the US constitution by expanding the powers of the Bank Privacy Act.
The duration is too short
Also, in a16z’s official response to FinCEN, the firm’s lawyer stated that the regulator only allows six working days during the holidays for feedback and comment on the proposed law, instead of the usual 60 days.
Some of the crypto community have described FinCEN’s move as another part of the lame duck government enforcing President Donald Trump’s last-minute rules.
“FinCEN proposed a rule in the eleventh hour of an outgoing administration that had all the hallmarks of an arbitrary and whimsical agency action,” said Haun.
Brian Armstrong, CEO of the major US cryptocurrency company Coinbase, repeated this sentiment on Twitter.
Since FinCEN’s proposed rule was published, crypto industry leaders have been actively providing feedback. Armstrong stated that if legal action is required, Coinbase would be willing to take regulators to court along with other large firms.
Yesterday, Twitter and Square CEO Jack Dorsey wrote a letter to FinCEN, saying that the rule “ not only impedes law enforcement capabilities, but also our ability to create a competitive service that allows customers who trade in cryptocurrency as the technology was designed to transfer seamlessly. “It will also limit American innovation by preventing it.”