FinCEN Extends Public Comments Period on Crypto Regulation by 45 Days; Into the Biden Administration

FinCEN cites "the robust responses" provided so far for extending the comment period on its proposed rule.

The Financial Crimes Enforcement Network (FinCEN) has announced reopening the public comment period on the proposed midnight rulemaking on certain transactions of cryptocurrencies.

Under this rule, banks and money service businesses like crypto exchanges would be required to keep records, submit reports, and verify customers' identity in transactions above a certain threshold, $10,000.

According to the regulator, the rule aims at closing anti-money laundering regulatory gaps for convertible virtual currency and digital asset transactions.

The regulator received “robust responses” and has reviewed over 7,500 comments submitted during this original comment period of this midnight rulemaking.

As such, FinCEN is now extending the period (again) to 45 days to continue “its active engagement with the cryptocurrency industry to ensure innovation with integrity that appropriately addresses anti-money laundering and national security risks,” reads the official announcement.

The cryptocurrency industry has been vehemently against this rule, along with several congress makers who wrote an open letter to the Treasury asking for an extension arguing that hasty decisions could curb the innovation and leave the US behind.

“This doesn't guarantee the rule won't go through, but takes us well past January 20 & into the Biden administration,” said Jake Chervinsky, General Counsel at Compound Finance.

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