FinCEN’s Crypto Wallet Regulations Frozen By POTUS

U.S. President Joe Biden Freezes Proposed Crypto Wallet Rules
  • President Joe Biden has frozen all organizational regulations and mandates, including previous Treasury Secretary Steven Mnuchin’s disputable proposition on “unhosted wallets”. 
  • The proposal mandated compulsory declaration of personal information of those users who wanted to transfer their digital assets into private wallets for transactions exceeding $3000 
  • The proposed regulation was received with immense backlash and criticism from crypto users

All regulatory proposals have been frozen by the U.S. President Joe Biden, including FinCEN’s crypto wallet rules disapproved by digital currency traders.

Crypto Advocates Completely Against Proposed Regulations

President Joe Biden has halted all processes regarding the recently proposed regulations, including the unpopular crypto wallet guideline suggested by Steven Mnuchin, the previous U.S. Secretary of Treasury. The President of the United States (POTUS) has taken this decision on his first day in office. 

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The regulation was initiated by the Financial Crimes Enforcement Network (FinCEN). It is for users who have crypto assets for more than $3000 in their private wallets. They will have to accept the condition of authorizing access to their private information. This proposal was not received well within the crypto industry, with numerous users voicing severe criticism and opposition to the regulation. 

Optimism Within Crypto Industry

The announcement relating to freezing all ongoing proposals and mandates came in a White House memorandum. The order doesn’t specifically address the crypto wallet proposition. However, it imposes an overall stop on all official regulations and manifestos awaiting additional review, which will be applicable for 60 days from the memorandum’s date.

Crypto users are supportive of this decision and have been vocally optimistic about it. Jake Chervinsky, the Co-Chairman of DeFi Group and General Counsel for Compound Labs, tweeted his approval of the same by stating that digital currencies have battled for a long duration with utmost resilience, and they can finally heave a sigh of relief. He shared his confidence in the newly appointed Treasury Secretary Janet Yellen will not take the same action as Steve Mnuchin.

Despite optimistic hopes, Janet Yellen has unfortunately voiced her scepticism with regards to cryptocurrency. Recently, she raised concerns surrounding the use of digital currency for illicit financing of terrorism. Nonetheless, Chervinsky is still vouching for Yellen. He mentioned that the Treasury’s focus would be primarily oriented towards fiscal and monetary policies, rather than the regulation of Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) mandates.

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Ritika Sharma
Ritika Kumari Sharma is an Economics Honors graduate from the University of Calcutta. She is completely into finance and believes that cryptocurrencies are the future. She is an enthusiast learner about the cryptocurrency and blockchain technology.

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