AGA requests US Government partnership to address digital currencies
Prominent gaming lobby group striving to ensure Digital Assets Executive Order protects gaming industry
The American Gaming Association (AGA) hopes to work in concert with the US government as the regulation of digital currencies begins to take shape following the signing of the Digital Assets Executive Order by President Joe Biden in March.
In a new letter, the AGA commends the federal government for taking action on digital assets while striving to ensure that any forthcoming policy will sufficiently protect the gaming industry.
Authored by AGA president Bill Miller, the letter details how past government regulations related to fiat currency have necessitated guidance and interpretation tailored to the gaming industry, and that the AGA remains “a willing partner” to help fashion a similar framework for digital currencies.
“As the US government works to translate the policy goals in the Digital Assets Executive Order to actionable legislative and regulatory requirements, AGA respectfully requests that the US government evaluate how any new frameworks or requirements would map onto the gaming industry,” Miller said.
The letter, which is addressed to members of the Treasury Department as well as White House Science and Technology Policy Deputy Assistant Dr. Alondra Nelson, specifically mentions how past anti-money laundering (AML) regulations have required special interpretation for gaming industry stakeholders.
Miller specifically references how the AGA promoted AML compliance under the regulations of the Bank Secrecy Act (BSA) while working to enhance its effectiveness through a series of recommendations specifically tailored to the gaming industry.
“In the context of the Bank Secrecy Act, for instance, there are often separate regulations or guidance for entities in the gaming industry to account for the unique nature of its operations,” Miller said.
“AGA members would also ask that the strategy address illegal cryptocurrency operations and provide law enforcement the tools they need to prosecute the offenders.”
Miller acknowledges that while US gaming operators are not yet in lockstep regarding the role and implementation of digital assets and cryptocurrency, the combination of Covid-19 pandemic precautions and demand signals from customers has nonetheless rapidly accelerated a greater shift to contactless payments.
In addition to helping create a flexible framework for US operators, the AGA is also working to stunt the presence and proliferation of illegal operators – it called for the Attorney General to crack down on black-market operators in a previous letter – which have long allowed for cryptocurrency transactions.
“Illegal gambling websites have increasingly been promoting the use of cryptocurrencies to avoid AML, geolocation, and identity controls required by legal regulated operators,” Miller said.