The cryptocurrency sector is ever-growing in popularity and is attracting attention from all over the world. However, there is still a significant lack of oversight of this sector in the United States. Nevertheless, this situation may be changed in the near days; principally if President Donald Trump’s latest budget proposal for the fiscal year 2021 goes all the way through.
Moreover, if the proposal manages to go through, as per some estimates the US Department of the Treasury may receive further supervision powers over the cryptocurrency sector. The new budget released on Monday constitutes $4.8 trillion and looks to move the Secret Service back to the Treasury to battle out cryptocurrency-related crimes; such as financing terrorism and money laundry.
The Secret Service to Combat Financial Crimes
In fact, the Secret Service was established back in 1865 within the Treasury to provide protection to Presidents and counter counterfeiting of currencies. However, it was transferred to the Department of Homeland Security back in 2003. The budget proposal details the new plan of action to reinforce the Treasury Department’s oversight on digital currency control. The proposal reads:
“Technological advancements in recent decades, such as cryptocurrencies and the increasing interconnectedness of the international financial marketplace, have resulted in more complex criminal organizations and revealed stronger links between financial and electronic crimes and the financing of terrorists and rogue state actors. The Budget proposes legislation to return the U.S. Secret Service to the Treasury to create new efficiencies in the investigation of these crimes and prepare the Nation to face the threats of tomorrow.”
In addition, this reshuffle means that Donald Trump is aiming to return the Secret Service to its original roots. He claims that tech advancements over the past decades; particularly digital currencies, on top of its interconnection between the international financial marketplace; has led to the rise of even more complex crime groups. Due to this reason, U.S. President Donald J. Trump believes it is best if the Secret Service returns to the Treasury; and fulfills its original purpose which is combating financial crimes. The document elaborates:
“These resources would enhance FinCEN’s protection of data collected under the Bank Secrecy Act, which would increase its value to law enforcement agencies, and expand its efforts to combat emerging virtual currency and cybercrime threats.”
Moving forward, most individuals doubt the proposal will go past congress. However, others highlight that it shows the priorities of the Trump administration. According to the Treasury Secretary, Steven Mnuchin; the budget prioritizes maintaining the part that the Treasury plays towards building a strong economy in the United States. Mnuchin went on to add that this will go on to ensure financial stability not only in the U.S but also abroad. It would also improve national security and the management of the taxpayers’ resources.
Bad Actors Misusing Digital Currencies
Furthermore, the Treasury secretary noted that the main reason for concern is the bad players who are always intending to misuse cryptocurrencies. He claimed that this is among the biggest threats to national security. The secretary believes that there is a great need for “very, very strong regulations” to guarantee that digital currencies are not as incognito as Swiss bank accounts.
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