Freshly sworn-in US President Joe Biden has asked the federal agencies to freeze the various rules, including the controversial crypto wallet rule proposed by US Treasury on the first day in office.
Joe Biden directed the authorities to review all the rules proposed by the former president Trump administration.
Crypto Rules Proposed By Steven Mnunchin Put On Hold
Federal Crimes Enforcement Network had proposed a rule that required all the banks and money service businesses to keep records and verify the customer’s identity to continue their business.
Joe Biden is taking proactive steps to review the stringent rules imposed by the Trump administration, including the one that enforces the self-hosted crypto wallets. Steven Mnuchin, the former Treasury Secretary, proposed federal rules that directed to monitor all the crypto transactions being done on the self-hosted wallets. Experts viewed it as a potential threat to the decentralized finance and cryptocurrency industry. The rule scrutinized the crypto wallets and would impose difficulties on the peer to peer transactions, which are a backbone to DeFi.
The new administration sent a memorandum to the agencies saying that all the new and proposed rules would require a review from the new appointees. Thus, the laws have been put on hold for the next 60 days. The cryptocurrency community hailed the new administration for taking a bold step, which would apparently be beneficial for the industry as a whole.
The controversial rule proposed by Steven Mnunchin mandated all the exchanges to record the name and address of the clients who transferred more than $3000 in crypto in a single day through private wallets. The rule also required them to share the Currency Transactions Reports for the customers making more than $10,000 crypto trade. The experts viewed it as a potential threat to several DeFi projects as, most of the time, the identity is anonymous in smart contracts.
The crypto community is hopeful as the new Treasury Secretary nominee Janet Yellen is pro-crypto to a more considerable extent. Jake Chervinsky, the Co-chair of the DeFi group at Blockchain association, said that “We fought hard & earned the right to take a breath & reset,”
Disclaimer
The information discussed by The Coin Magazine is not financial advice. This is for educational and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Do your due diligence and rating before making any investments and consult your financial advisor. The researched information presented we believe to be correct and accurate however there is no guarantee or warranty as to the accuracy, timeliness, completeness. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright The Coin Magazine All rights reserved.
