US Republicans Demand Clear Definition of Virtual Asset Service Providers

Republican members of the US Congress are calling for clarity from the Biden administration on its stance towards cryptocurrencies. In a letter addressed to Treasury Secretary Janet Yellen, Republican lawmakers demanded answers regarding the administration's plans for regulating cryptocurrencies and blockchain technology.

The letter, signed by nine members of Congress, expressed concerns over the administration's potential use of cryptocurrency surveillance tools and its impact on individual privacy rights.

The lawmakers also called for a clear definition of what constitutes a "virtual asset service provider" and urged the administration to clarify the regulatory requirements for such providers.

In addition, the lawmakers expressed their belief that the regulatory landscape for cryptocurrencies is unclear and that this lack of clarity has led to significant market volatility. They called for a more transparent and predictable regulatory environment for the industry to flourish.

The letter comes amid growing scrutiny of cryptocurrencies in the United States, with regulators and lawmakers expressing concerns over their potential use in illegal activities and their impact on financial stability.

The Biden administration has previously hinted at potential regulation of the sector but has yet to provide any concrete details on its plans.

Furthermore, the lawmakers claimed that the administration's proposed tax hikes on cryptocurrencies would "harm the competitiveness of American businesses." They argued that any new taxes on cryptocurrencies should be carefully considered and should not discourage innovation and growth in the sector.

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