Biden Freezes FinCEN’s Proposed Cryptocurrency Regulations

President Joe Biden has frozen all Federal regulatory processes including proposed cryptocurrency regulations by FinCEN.

January 21, 2021 | AtoZ Markets US President Joe Biden has suspended the implementation of some of the decrees of his predecessor, Donald Trump. This also affected the proposal for the verification of users of non-custodial wallets of the Financial Crimes Network (FinCEN).

Biden Had FinCEN’s Proposed Cryptocurrency Regulations Frozen

The announcement came in a White House memorandum for the heads of various federal agencies, including the FinCEN. Lawyer Jake Chervinsky drew attention to the White House statement.

“We fought and earned the right to reset. Janet Yellen is not Steve Mnuchin. I am optimistic,” he wrote.

A memorandum to executive offices and agencies says the new presidential-nominated new officials will review all existing rules.

Earlier, Biden had appointed the former head of the Federal Reserve System (FRS) Janet Yellen to the post of Treasury Secretary. She will take office after Senate approval.

“Janet Yellen is likely to become the biggest ally of Bitcoins in the next four to eight years,” – wrote the head of Morgan Creek Digital Anthony Pompliano at the end of last year.

The US Treasury Department proposed strict crypto KYC regulations in December last year and asked cryptocurrency exchanges in the country to verify the identity of crypto wallet owners if the transaction exceeds $3,000.

Additionally, the authority asked digital exchanges to submit the personal information of wallet owners including their name, address, and purpose of the transaction to the FinCEN, if the total value of the transaction crosses $10,000.

Representatives of a16z, Coinbase, and Square CEO Jack Dorsey called these rules disastrous for the cryptocurrency industry. In their opinion, the strengthening of regulatory regulation of the industry would lead to a reduction in cryptocurrency users.

We will remind, on January 18, Joe Biden appointed financier Gary Gensler chairman of the Securities and Exchange Commission (SEC).

Think we missed something? Let us know in the comment section below.

Share Your Opinion, Write a Comment