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,”
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