Biden Freezes Treasury's Proposed Crypto Wallet Rules
The first day after his inauguration, President Biden told federal agencies that his appointees will have to review all ongoing rules. President Biden freezes all new or pending from the times of Trump rules until his administration reviews them.
Biden Freezes Treasury's Proposed Crypto Wallet Rules
The first day after his inauguration, President Biden told federal agencies that his appointees will have to review all ongoing rules. President Biden freezes all new or pending from the times of Trump rules until his administration reviews them.
The Crypto Wallet New Rule is on Freeze
Of course, his demand includes a new rule from December 18 that Financial Crimes Enforcement Network (FinCEN) under former US Treasury Secretary Mnuchin proposed. The rule would "require banks and money service businesses ('MSBs') to submit reports, keep records, and verify the identity of customers" who make transactions to private digital currencies wallets.
DeFi group co-chair Jake Chervinsky commented on the news on his Twitter:
"President Biden has frozen all agency rulemaking pending further review. This includes former Secretary Mnuchin's proposal on "unhosted wallets."
We fought hard & earned the right to take a breath & reset. Janet Yellen isn't Steve Mnuchin. I'm optimistic."
Not a surprise that the Treasury tried to push the rule before the end of Donald Trump's term.
In meantime, crypto companies and different advocacy organizations lobbied the Treasury to review the new regulations, lodging thousands of public comments in a period of two weeks.
The most important for opposers of the regulation was to expire the time and wait for new referees.
"Thanks in part to the community’s response, the rulemaking was extended into the Biden administration," says Neeraj Agrawal, Communications Director at Coin Center. "When a new administration takes office it`s standard practice to freeze and evaluate ongoing rulemaking."
The Game is Strong
The memorandum from White Chief of Staff Ronald Klain requests all agencies to "consider postponing the rules’ effective dates for 60 days from the date of this memorandum, consistent with applicable law...for the purpose of reviewing any questions of fact, law, and policy the rules may raise."
Besides, to allow a comment period for one month.
In the end, the memorandum has to ensure that all ongoing regulations will be examined by Biden's appointees. The President has appointed Janet Yellen as Treasury Secretary, but the Senate has to approve her nomination first. However, Mnuchin-appointee Kenneth Blanco leads the Treasury bureau for now.