- The Treasury crypto rule change proposed by former Treasury secretary Steve Mnuchin has been frozen by the Biden administration
- President Biden issued a freeze on all pending regulatory changes last week
- The crypto community helped put off implementation by commenting in their thousands on the proposed rule change
The proposed Treasury crypto rule change that would have dramatically increased the oversight of individual cryptocurrency transactions has been put on hold following the transition from the Trump administration to the Biden administration. The new administration has announced that all in-process rule changes will be reviewed, which includes the Treasury’s crypto amendments, although credit must go to the crypto community who helped delay the intrusive and rushed implementation.
Treasury Crypto Rule Change Stirred Hornets’ Nest
The proposed Treasury crypto rule change, announced by former secretary Steve Mnuchin late last year, would have required exchanges serving U.S.-based customers to record the personal and transactional details of all crypto transactions over the value of $3,000 and report all transactions over $10,000 to the Financial Crimes Enforcement Network (FinCEN).
The proposed rule change, and the speed with which it was being attempted to be pushed through, stirred the crypto hornets’ nest and prompted many prominent crypto figures into action. Crypto users were urged to comment on how the rule change would negatively affect them, in the knowledge that FinCEN is duty bound to read and reply to each one. This had the desired effect, with more than 7,000 comments made within a week, while those with contact inside the government used their influence to try and bypass the red tape and get their concerns heard.
Outcry Helped Delay Rushed Implementation
The outcry seemed to work as the self-imposed deadline approached, and by last week it was clear that the Treasury crypto rule change was not going to be passed before the deadline. Better news was to come when President Biden issued a regulatory freeze the day he took office, with each proposed rule change to be reviewed on an individual basis. Of course this doesn’t mean it will never be implemented, but at least the suggested changes will be afforded the analysis and discussion it deserves.