Treasury asks if there are any outdated crypto-related regulations

The Treasury Department is seeking public comment on how cryptocurrency can be used in illegal activities and how the federal government could curb such crimes.

Notably, one of the questions asks: "What existing regulatory obligations in your view are no longer fit for purpose as it relates to digital assets?" Treasury also questions what alternative obligations would "effectively address illicit finance risks related to digital assets and vulnerabilities?" 

The notice stems from President Biden's executive order asking various agencies, including Treasury, to study cryptocurrencies. Treasury released several reports tied to the executive order earlier this week, urging financial regulators to continue tight oversight of digital assets, as well as robust consumer protection. 

"Without appropriate controls and enforcement of existing laws, digital assets can pose a significant risk to national security by facilitating illicit finance, such as money laundering, cybercrime and terrorist actions," U.S. Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian Nelson said in a statement accompanying the request for comment. "As we work to implement the Illicit Finance Action Plan, hold bad actors accountable and identify potential gaps in existing enforcement, we look forward to receiving the public's input on this urgent work."

The request for information will officially be published on Tuesday. The deadline for comments is Nov. 3.