27 February 2021
US 46th President Joe Biden has taken a huge step on his first day itself. He has decided 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 with written notice for the heads of various federal agencies, the Financial Crimes Enforcement Network (FinCEN) included. However, the edict doesn’t mention the crypto wallet proposal but puts a general freeze on all agency rulemaking pending review, effective for 60 days from the date of the memorandum.
Crypto enthusiasts have praised the move with Compound Finance General Council Jake Chervinsky stating; “We fought hard & earned the right to take a breath & reset. Janet Yellen isn't Steve Mnuchin. I'm optimistic.”
Back in December, the crypto wallet regulation proposal was made by FinCEN under former US Treasury Secretary Mnuchin. If the proposal is passed, the banks will be required to share reports, keep records, and verify the identity of customers who make transactions to and from private cryptocurrency wallets.
Many crypto industry leaders have criticized this proposal including Square CEO, Jack Dorsey.
As per, Critics it would be technically impossible for many projects to comply because smart contracts do not contain name or address information.
President Biden has appointed Janet Yellen to take over as Treasury Secretary, but she has passed critical comments on crypto that they are used "mainly for illicit financing." But Chervinsky commented that she may not be all that bad:
“First, anyone is better than Secretary Mnuchin, who decided long ago that he hated everything about crypto. Second, although Dr. Yellen may not be a fan now, I expect she'll be open to learning & listening, & will follow regular orders in deciding on new regulations. That's good.”