As there are news about the government’s efforts to regulate cryptocurrency trade, there are several concerns in people and investors’ minds regarding its impact. The first concern is that associating the identity with the cryptocurrency assets is actually a violation of financial privacy. The regulations try to impose transference when people require more financial liberty and privacy regarding their assets.
Once these regulations are implemented to their fullest, they will have a deteriorating effect on cryptocurrencies’ self custody. The petition about cryptocurrencies and the new proposed rules initially required 2500 signatures of people agreeing to the changes. The baseline level of 2500 was at the time of publishing; however, now they require the Chamber of Digital Commerce and Crypto assets trade Association, banks, and exchanges to achieve 5000 signatures for the approval.
Due to grave concern, the passing of the petition is urgent. Normally such a procedure can take up to 3 months and formally one month at least. The issue can be kept on hold for 2 months if it is significant. You can have an idea about the urgency by looking at the fact that only 15 days had been given, including the holidays, which made it somehow problematic for the petition to get significant replies.
If more days are provided, significant organizations will assess the changes deeply and provide more in-depth comments. Such deep analysis can provide better strategies and amendments for good financial flows of cryptocurrencies.
The organization states that they gave short notice to comment because most of the concerned parties were already informed, and there is Foreign Affairs implication regarding cryptocurrency regulations. However, all this does not explain why the organization is so determined and focused on getting the proposal passed quickly.
The major concern seems to be the uses and downfall of cryptocurrencies during the Trump administration. Cryptocurrencies faced hard times regarding taxes and regulations because, in the Trump administration, they were a major focus. You can have an idea about it by looking at Donald Trump’s tweet that said that he was not a very big fan of Bitcoin, which is actually the highest cryptocurrency.
If the comment period is extended from at least one month to three months, the organization can get better rulemaking and reviewing outcomes. The major concerns are regarding banking regulations and the imposition of financial constraints regarding traditional currency applied on the same level on cryptocurrencies.