President Joe Biden Freezes Former Secretary Mnuchin’s Proposal on ‘Unhosted’ Crypto Wallets
President Joe Biden is in full work mode right from the day of his inauguration as he froze all agency rulemaking pending further review, as per the memorandum published on Jan 20, 2021.
The good thing for the cryptocurrency market is that it includes the proposal made by former Treasury secretary Steve Mnuchin on “unhosted crypto “wallets.
The proposal was first submitted on Dec. 18, 2020, which requires exchanges to store customers' information transacting more than $3,000 in crypto per day and report those above $10k. The midnight rulemaking initially proposed a short 15-day public comment period, unlike the required 60 days, which was extended earlier this month. Jake Chervinsky, General Counsel of Compound Finance said,
“We fought hard & earned the right to take a breath & reset. Janet Yellen isn't Steve Mnuchin. I'm optimistic.”
Chervinsky is hopeful about crypto development under Biden’s administration because “anyone is better than Secretary Mnuchin, who decided long ago that he hated everything about crypto.”
Although the Treasury Secretary nominee Janet Yellen is not a fan of crypto either, Chervinsky expects, “she'll be open to learning & listening, & will follow regular order in deciding on new regulations.”
Yellen shared concern regarding cryptocurrencies’ use for terrorist financing on Tuesday in front of the Senate Finance Committee, where she talked about “curtailing” their use. This was surely disappointing, but Chersvinky says we shouldn’t overreact as she “is an economist, not an investigator.”
“I don't know if she's thought deeply about crypto yet. I expect her main focus will be monetary & fiscal policy, not AML regulation, so I'm hoping her views will evolve,” he said. “We have plenty of time to educate her on the issues.”