Several members of Congress have voiced opposition to a rumored occludent on self-hosted crypto wallets in the works at the U.South. Treasury.

In a December. 9 letter addressed to Treasury Secretary Mnuchin, 4 members of the Congressional Blockchain Caucus wanted answers for rumored Treasury rulemaking that would restrict self-hosted wallet usage in the U.S.

The authors — Warren Davidson, Tom Emmer, Ted Budd and Scott Perry — argue that such limitations:

"Would hinder American leadership and preclude meaningful participation in the technological innovation currently underway throughout the global financial system."

Speaking to Cointelegraph, Davidson noted that Treasury rulemaking is probable more dangerous than last week's STABLE Act, that seeks to lock down on contained operators of stablecoins. The Ohian congressman said: "Mnuchin really has a lot of ability to make policy through rulemaking, so that's really more pressing."

Davidson continued to argue in favor of the benefits of cocky-hosting and P2P:

"The real issue is, self-hosted wallets are useful for all sorts of potential blockchain applications. And then the ability to move a token without an intermediary is an essential element of true blockchain. If you expect at a frictionless organization, part of the Bitcoin whitepaper that made blockchain famous and growing as a technology is the ability to practice something peer-to-peer. It's a core tenet of the technology."

Today'due south letter argues that crypto applied science is actually helpful for law enforcement looking to trace illicit usage:

"Such a regulation could actually undermine the Treasury Section from stopping illicit actors from exploiting the financial system, both within the traditional banking organisation and the digital asset ecosystem."

In addition to defending the technology behind self-hosting wallets, today's letter only asks the Treasury to publicize its plans, which have remained rumor.

The crypto industry initially launched a defense of self-hosted wallets and peer-to-peer crypto transactions at the end of November.

Earlier today, several of the same congresspeople signed a separate letter of the alphabet to the Securities and Exchange Commission. In that letter of the alphabet, they asked for more clarity for security token custody.