Biden freezes proposed FinCEN rules regulating the cryptocurrency industry

President Joe Biden has paused the implementation of several of his predecessor Donald Trump’s orders. This includes the proposal to verify users of non-custodial wallets on the network in the fight against financial crime (FinCEN).

Lawyer Jake Chervinsky drew attention to the White House statement.

President Biden has frozen all agency rulemaking pending further review. This includes former Secretary Mnuchin’s proposal on «unhosted wallets.»

We fought hard & earned the right to take a breath & reset. Janet Yellen isn’t Steve Mnuchin. I’m optimistic.https://t.co/0EAmYhbqa5

— Jake Chervinsky (@jchervinsky) January 21, 2021

“We fought hard and earned the right to reset. Janet Yellen is not Steve Mnuchin. I’m optimistic,” wrote Morgan Creek Digital’s Anthony Pompliano at the end of last year.

The frozen FinCEN regulatory changes proposed the collection of personal information about the counterparties to deals and the customers of cryptocurrency companies’ transactions.

Representatives from a16z, Coinbase and Square CEO Jack Dorsey called these rules ruinous for the cryptocurrency industry. In their view, tighter regulatory oversight would drive down the number of cryptocurrency users.

In January, Joe Biden nominated financier Gary Gensler to chair the Securities and Exchange Commission (SEC).

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