The Treasury’s now infamous proposal to request information on crypto transfers from exchanges to self-hosted wallets is on the move again.
Per one Announcement from the Financial Crimes Enforcement Network, or FinCEN, on Jan. 26, stakeholders will have another 60 days to respond to the proposal. While a marked improvement from the 15-day comment period of the original proposal, unfortunately for the crypto industry, it doesn’t appear that the actual terms of the proposal have changed along with the administration.
The news follows that of Janet Yellen confirmation as secretary to the treasury last night. Shortly after the inauguration, the Biden administration ordered a freeze on all midnight regulation of appointees, including the Treasury.
FinCEN originally had announced the proposal right before Christmas with a wildly shortened comment period so that the last line could come out before Trump left office. It was rumored to be an initiative that came directly from Trump’s Treasury Secretary Steven Mnuchin himself.
The crypto community responded with indignation, commented sufficiently, and exerted enough political pressure to get Mnuchin’s Treasury to extend the comment period, effectively passing the proposal on to his successor. Some hoped that Yellen, who called it Biden his finance minister nominee in November, would be less antagonistic to crypto.
It remains to be seen what happens after the Treasury receives another round of comments, but the return to this rule on Yellen’s first formal workday is no cause for optimism.