Treasury Dept wants public comments on Crypto regulation - what to say?

August 7, 2022 9:32 PM

The Treasury Dept has requested public comments on crypto regulation with tomorrow August 8th as the final date for any input. As someone who is strongly anti-crypto due to its rampant environmental impact, funding of black market & illegal drug trade, and unfettered proliferation of scams, I'm discouraged to see all the pro-crypto messages posted. I feel like I'm back in high school with an assignment due, and not enough time to do it right. What are some good rational anti-crypto arguments to post by tomorrow??
posted by hampanda to Work & Money (5 answers total)

Best answer: I'm staunchly anti-cryptocurrency and have posted a few links with citations in previous posts on MetaFilter:

On the human cost of the carbon emissions caused by cryptocurrency

On the cost of ransomware, using the government's own figures
posted by jedicus at 4:13 AM on August 8, 2022 [1 favorite]

Best answer: You don't have to start from scratch, the request for public comments has a very clear outline of what they want to see in section III. I'd focus on answering those questions simply and directly. It's the treasury department, not the EPA, they don't care about the environmental effects. They care about direct the effects on the economy and on regulation. They care about accountability, fraud, and market manipulation.

Point out the scams. Especially the pyramid schemes and other shady investments where folks are trying to do an end run around the financial markets by adding "But with crypto" to the end. (web3isgoinggreat.com is a good starting place.)

Just submit something. It doesn't have to be a work of art, it just has to get submitted. Something is infinitely better than nothing.
posted by Ookseer at 6:10 AM on August 8, 2022

Best answer: Here's what I submitted:

Regarding Section (III)(A)(1)(a) ("Who are the users, consumers, and investors that are adopting digital assets? What is the geographic and demographic profile of consumers and investors in digital assets?") A major adopter of digital assets are criminals using ransomware and malware. In its Financial Trend Analysis on Ransomware Trends in Bank Secrecy Act Data Between January 2021 and June 2021, "FinCEN identified bitcoin as the most common ransomware-related payment method in reported transactions." These reported transactions alone amount to hundreds of millions of dollars per year.

Geographically, many adopters of digital assets for criminal purposes are based in North Korea and Russia. According to the Cybersecurity and Infrastructure Security Agency's Alert AA20-239A, a North Korean hacking group "target[s] cryptocurrency exchanges to steal large amounts of cryptocurrency, sometimes valued at hundreds of millions of dollars per incident." Just 3 days ago, the Justice Department announced the extradition of alleged Russian cryptocurrency money launderer Alexander Vinnik, who is accused of operating "an illicit Bitcoin exchange alleged to have received deposits valued at over $4 billion."

These major financial crimes, which support criminal gangs and sanctioned governments, rely on the existence of a weakly regulated digital asset financial system. Non-criminal uses of digital assets provide the liquidity, infrastructure, and value that make digital assets attractive for these criminal uses.

Regarding Section (III)(E) ("Impact on the Most Vulnerable"): the extreme short and long-term volatility of digital assets, including the history of numerous digital assets collapsing entirely, together with their high transaction costs, makes them particularly ill-suited for economically vulnerable people. We should improve the banking system, not encourage adoption of an asset class that is fundamentally inappropriate to the needs of the financially underserved.

posted by jedicus at 6:51 AM on August 8, 2022 [3 favorites]

I guess it depends what you want to happen -- do you want regulation or you don't want regulatory oversight? There are pro-crypto people that are for more active regulatory approach, and there are some that are totally against it.

I am not sure what is more natural position for anti-crypto people. Regulations will legitimize crypto, while not regulating has it's own downsides (as seen currently). What is your aim?
posted by zeikka at 7:46 AM on August 8, 2022

Best answer: Proof of work coins&other crypto apps need to be regulated out of existence
posted by lalochezia at 10:05 AM on August 8, 2022 [1 favorite]