New US President Joe Biden has frozen all agency regulations, including the Financial Crimes Enforcement Network (FinCEN) proposal regarding cryptocurrency wallets. Biden will appoint someone to “review new or ongoing rules,” the White House has announced.
FinCEN’s Crypto Wallet proposal frozen, pending regulatory review
Joe Biden, the 46th president of the United States, has frozen all rules inherited from the previous administration, the White House announced on Wednesday after his inauguration. This includes the proposal through the Financial Crimes Enforcement Network (FinCEN) affecting cryptocurrency wallets. The freeze is “to ensure that the appointees or designated persons of the president have the opportunity to review new or pending rules.”
The announcement continues:
With regard to rules that … have not entered into force, please consider delaying the effective dates of the rules for 60 days from the date of this memorandum.
“For rules that have been delayed in this way, during the 60-day period … please consider opening a 30-day comment period to allow interested parties to comment on issues,” it adds, noting that the delay can be extended if necessary.
The crypto community welcomes this regulatory freeze news. Attorney Jake Chervinsky, who played a pivotal role in leading the crypto community to file comments with FinCEN, tweeted:
President Biden has frozen all of the agency’s regulations pending further review. This includes former Minister Mnuchin’s proposal on ‘non-hosted wallets’.
The lawyer added, “We fought hard and deserved the right to breathe and reset. Janet Yellen is not Steve Mnuchin. I’m optimistic. ”Biden has chosen Yellen to become the new finance minister. The former Federal Reserve Chairman himself is not a fan of bitcoin or cryptocurrencies and stated at a recent Senate hearing that cryptocurrencies are mainly used for illegal financing.
In addition to FinCEN’s regulation on cryptocurrency wallets, Biden has inherited a few other regulatory issues from the Trump administration related to the Office of the Comptroller of the Currency (OCC). Former OCC chief Brian Brooks had warned that some of the positive crypto regulations he has approved may be reversed during the Biden administration. They include allowing banks to provide crypto detention services and usage public blockchains and stablecoins.
“Blockchain, cryptocurrency and decentralized finance are doing to banks what email did to the post office. Our job is to rethink the role of banks, ”Brooks emphasized in an article he wrote on The Hill last week. “Because of their investment in technology, banks will be the main hubs that validate transactions on decentralized ledgers and send and receive tokens through blockchains, as they process digital payments today,” he said. “Banks will also provide advice, safekeeping and structured products. Banks could also resume their 19th century role of issuing treasury notes and issue digital coins with dollars. He also noted:
Cryptocurrency and decentralized finance offer several benefits … If the United States focuses on the risks and not the benefits, we will fall behind as the global financial system rewires.
Brooks cited among the benefits “increasing financial access, giving people more control over their financial lives, and speeding up global payments.”
The former bank regulator is particularly concerned about a proposal from Congressman Maxine Waters. He urged the Biden government not to “combine politics and innovation”. Brooks explained that “Maxine Waters, President of House Financial Services, proposes reversing the innovation of the past four years,” adding that “she wants to withdraw the ability for banks to hold cryptocurrency assets and to follow the guidelines. to withdraw that banks can support digital currencies. “
There are also some open crypto-related issues with the U.S. Securities and Exchange Commission (SEC), including the lawsuit against Ripple Labs and its executives. Biden has nominated MIT’s blockchain professor Gary Gensler to become the new SEC chairman.
Do you think Biden will scrap FinCEN’s proposal for crypto wallets?? Let us know in the comments below.
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