Biden Halts Proposed FinCEN Crypto Rules

The world of online gambling is constantly changing and evolving which includes the way players are allowed to fund their accounts.  

Cryptocurrency is one digital payment option that is rapidly growing into a top choice and is set to be a prime focus for the industry in 2021. 

Recent news on the proposed crypto wallet rules has left many users wary of impending restrictions.  

Earlier in January, President Biden halted various in-process rules including the proposed crypto wallet rules.  

 FinCEN Grinds to a Halt 

Crypto users let out a sigh of relief when President Biden halted all rulemaking on his first day in the agency. While the crypto rules by the Financial Crimes Enforcement Network were not specifically mentioned by name, it fell under the grand scale of rules put on hold.  

Biden’s halt on agency rulemaking is set to last for the next 60 days pending review. For crypto users who were against the rule, there is a glimmer of hope that things will turn around.  

The proposal, originally published on the 18th of December, was met with the displeasure of many crypto users. The main reason being the short 15-day window provided for commentary and feedback on the rules proposed.  

Crypto users are hoping they will be provided the chance of proper engagement with the Treasury Department regarding the proposal.  

The main issue for most being the proposed rule requiring banks and money service businesses to submit reports, keep records and verify the identity of customers completing transactions to private addresses. This is a huge hit to the privacy that only cryptocurrencies can provide. 

The proposed ruling has already been dissected with flaws revealed by a number of influential figures within the industry which includes Bitcoin advocate and CEO of Square, Jack Dorsey.  

 Don’t Celebrate Just Yet 

Currently, Mnuchin-appointee Kenneth Blanco chairs the FinCEN bureau. Newly appointed Treasury Secretary, Yanet Yellen will have a large input when it comes to the final outcome. Her stance will be a defining factor in the direction the proposal goes.  

This should be a small concern for crypto players as Yellen is not exactly known to be a crypto enthusiast. In fact, she’s been publicly critical of Bitcoin and has stated that cryptocurrencies are a particular concern in facilitating crime and terrorist activity.  

Yellen was officially confirmed as Treasury Secretary on the 25th of January 2021. And while there might be a slight pause in the proposed crypto rules but the fight is not over. 

With Yellen sworn in it is almost a guarantee that the Treasury will continue their attempts to regulate crypto transactions. 

 On the Flipside 

Industry experts and Washington’s insiders are cautiously optimistic about the future of Biden’s crypto plans. One reason for the optimism is Biden’s pick of Gary Gensler to lead the SEC. Gensler is a Wall Street veteran that is very familiar with cryptocurrency.  

Gensler has described cryptocurrency as a “catalyst for change” and made arguments on why it is needed to bring the Federal Reserve into the modern payments era.  

With Gensler pro-crypto and Yellen against it, it will be interesting to see what changes the Biden administration comes up with for 2021.