The Stellar Development Foundation criticized FinCEN's proposed rule on convertible virtual currency transactions, arguing it was developed without sufficient industry input and would hinder law enforcement while stifling blockchain innovation and financial inclusion.
The Financial Crimes Enforcement Network (FinCEN) proposed a rule to combat money laundering and terrorism financing through convertible virtual currency transactions. The Stellar Development Foundation expressed support for the goal but criticized the rule's development process, which lacked adequate industry and public engagement. SDF argues the proposal would actually hinder law enforcement investigations, burden decentralized networks, stifle innovation in financial access, and disadvantage Americans adopting blockchain technology. The foundation plans to submit formal comments during the 12-day public comment period (December 23, 2020 to January 4, 2021) and calls for closer collaboration between public and private sectors in blockchain policymaking.
