- With the appointment of the New President in the US Assembly, a guideline was released by Biden’s White House, which proclaimed a pause in the regulations made by FinCEN in the cryptocurrency market
- FinCEN had extended the comments period by 45 days, and this has provided relief to the cryptocurrency companies
- After the declaration of an extension in the comments period, Coinbase has personally written a letter to FinCEN stating that it should officially close the comments period as per the instructions from the White House
Under Biden’s guidance, Coinbase had requested a pause in the previous year’s rules that were made for the cryptocurrency market and its business. The request was made just following the announcement in which FinCEN had allowed an extension of 45 days for the company to comment on all its regulations. Coinbase being the direct exchange of digital currency has passed a letter to FinCEN to proceed with the cryptocurrencies‘ mentioned regulations. The request claimed the agency to follow the recent guidelines of the Biden White House. According to the guidelines, all the pending agencies’ rulemaking is to be paused, and this also included the recent amendment made on KYC practices by FinCEN. As per the regulations, all the agencies should ‘immediately withdraw.’
Biden’s new guidelines
The president’s quoted in his new guidelines:
‘With respect to rules that have been sent to the OFR but not published in the Federal Register, immediately withdraw them from the OFR for review and approval” by “a department or agency head appointed or designated by President Biden.’
The nominee, Janet Yellen, who was recently appointed for President Biden’s Secretary of the Department of Treasury, has clearly stated to congress the recent take of FinCEN on the regulations cryptocurrencies should hold it back until the newly appointed administration has performed a substantial review. Based on the pause, a current request had been drafted and sent by Coinbase to give them a little more time before announcing the future regulations of FinCEN.
Another 45 days extension
An announcement was made by FinCEN recently that it will be extending the period of comments, which was earlier dated on 4th January 2021, by some 45 days. The new extension in the deadline sent a relief message to the crypto companies. However, the recent letter that was sent by Coinbase claimed that FinCEN had not ceased the comments period yet, and according to them, the comment period should be closed officially by FinCEN; it also quoted the instructions that were posted by the White House. Coinbase also mentioned that it would use up the time given to them during the pause in the regulatory period to engage in direct contacts with FinCEN on important cryptocurrency matters.
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