Joe Biden, the newly elected US President, has frozen all Federal regulatory processes during his first day at the office. The new order included the controversial crypto KYC regulations proposed by the former Treasury Secretary, Steve Mnuchin.
According to the official announcement, Biden wants to ensure that his appointees have enough time to review the pending rules. In a memorandum sent to the heads of executive departments and agencies, Biden ordered to postpone the rules’ effective dates for at least 60 days from 20 January.
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 Financial Crimes Enforcement Network (FinCEN), if the total value of the transaction crosses $10,000.
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The Treasury department faced criticism by the crypto community for the proposed rules as Coinbase termed the Treasury’s decision as a significant intrusion into the privacy of cryptocurrency owners. Finance Magnates reported earlier this month about a letter sent by eight congress members in the US to the Treasury Secretary Mnuchin with concerns over the process of FinCEN’s proposed crypto rule.
Crypto Market and Biden Administration
The crypto market seems optimistic about a clear regulatory framework under the newly elected president, Joe Biden. Biden is planning to appoint Michael Barr, a former advisory board member of Ripple as the Head of the Office of the Comptroller of the Currency (OCC).
“As appropriate and consistent with applicable law, and where necessary to continue to review these questions of fact, law, and policy, consider further delaying, or publishing for notice and comment proposed rules further delaying, such rules beyond the 60-day period. Following the 60-day delay in effective date,” the official memorandum for the heads of executive departments and agencies states.