Frank Asks Treasury to Delay Online Gambling Payment Regulations
Barney Frank is surprised and disappointed that the Bush Treasury is trying to finalize UIGEA regulations at the last minute. After two years of hearing testimony from financial and government leaders over the unworkable and problematic nature of the law which attempts to prevent payment transactions regarding online casinos, Treasury officials are pushing a "midnight drop" of regulations.
Frank requested Secretary of the Treasury Henry Paulson delay the process until the incoming administration has a chance to review and discuss the proposed rules. The Massachusetts Representative has been a major critic of the UIGEA, and had his Payment Systems Protection Act advance from committee last month.
Frank's bill would prevent UIGEA implementation so as to guard the U.S. financial system from unnecessary stress at a fragile time economically.
Frank said, in a letter to both Paulson and Federal Reserve head Ben Bernanke, that the action would “tie the hands of the new administration, burden the financial services industry at a time of economic crisis and contradict the stated intent of the Financial Services Committee."
The new regulations, if pursued as presently by the White House and Treasury, would go into effect just a day before Barack Obama's inauguration as U.S. President. This is due to the necessity to complete the review by the Office of Management and Budget, and a sixty-day consideration period.
Frank goes on to say the establishment of regulations clearly violates the intent of the Financial Services Committee. He might well have added the will of the American voter, as clearly expressed last week.
