President Joe Biden has frozen all regulatory processes, including the proposed FinCEN rules, which are detrimental to the crypto industry.
Positive for the crypto space
President Biden froze FinCEN proposed crypto wallet regulations
One of the first actions President Joe Biden took on his first day in office was to freeze the Federal regulatory process, including the controversial self-hosted crypto wallet regulations proposed by former Treasury Secretary Steven Mnuchin.
The announcement came in a White House memorandum for the heads of various federal agencies, including the Financial Crimes Enforcement Network (FinCEN). The announcement does not specify the crypto wallet offer, but puts a general freeze on all agency rule-making actions awaiting review, effective for 60 days from the date of the announcement.
Crypto industry experts welcomed this move:
“We struggled a lot and won the right to breathe and reset. Janet Yellen is not Steve Mnuchin. I am optimistic. ”
What does the regulation bring?
The self-hosted wallet offer was made on December 18 by FinCEN under former US Treasury Secretary Mnuchin. If the law passes, banks and money service businesses must report, keep records, and authenticate customers who make transactions to and from private cryptocurrency wallets.
The proposal was heavily criticized by industry leaders, including the CEO of financial services firm Square, Jack Dorsey, saying that today it is not necessary for cash, nor should it be necessary to collect counterparty name and address for cryptocurrency.
Critics also noted that many projects would be technically impossible to adapt, as smart contracts do not contain name or address information.