The CEO and co-founder of p2p payments firm Circle, Jeremy Allaire, sent a letter to senior staff of the United States Department of the Treasury on 9th Dec., appealing for regulators to collaborate with the industry in adopting cryptocurrency regulations.
Allaire warned United States regulators that a number of its proposed rules pose an immediate risk to the country’s competitiveness and will potentially trigger unintended consequences around cryptocurrencies and blockchain-related use cases.
The exec specifically mentioned a new proposal to ban so-called unhosted or self-hosted wallets. Allaire argued that the proposal doesn’t address actual risks within the industry:
“I believe the proposal would inadequately address the particular risks that are in dispute, would significantly harm industry and American competitiveness, would still yield economic and industry advantage to Chinese firms, and would have significant unintended consequences around the broader use-cases for this technology.”
Allaire also added that both the industry and regulators require some time to map out best practices in regulating emerging technology together.
“The industry needs time, probably 1-2 years, to place these kinds of technologies in situ,” he added, “Not only does the industry need this point, but this may permit the industry and financial regulators to collaborate together on building the rule sets and supervisory schemes that add up within this new world.”
Allaire collaborates with several members of Congress including representatives Warren Davidson and Tom Emmer, who opposed the rumored ban on self-hosted cryptocurrency wallets in an official letter to the Treasury recently on 9th Dec.
Some cryptocurrency advocates have stated that they’re unsure what a “self-hosted wallet” means. “I don’t even know what a self-hosted wallet is. I only know ‘not my keys,’ and ‘my keys,’” Blockstream chief strategy officer Samson Mow added on 9th Dec. 9.