New US President Joe Biden has suspended all federal legislative processes, including the proposed Financial Crimes Network (FinCEN) Act. The law required digital currency service providers to enforce strict authentication policies.
To Report Coin Telegraph, one of the first steps taken by the new US President Joe Biden on his first day in office, is to stop the process of legalizing the authentication of insecure digital currency wallets. The bill was introduced by Steven Mnuchin, the former US Treasury Secretary.
The source of this newsletter is the White House sent to the heads of various federal agencies. The order to stop some legal proceedings also includes the Financial Crimes Network (FinCEN). The decree does not specifically mention the proposed digital currency wallets, but will suspend all legal action in this regard for 60 days from the date of this letter.
Digital currency industry activists supported the move. Jake Chervinsky of Compound tweeted:
We fought hard and got the right to breathe and restart. Janet Yellen is not Steven Manuchehr. I am optimistic.
The self-hosted wallet proposal was presented by FinCEN on December 18 under the supervision of US Treasury Secretary Steve Manuchein. If passed, the law would require banks and monetary services businesses to submit reports, record documents, and verify the identities of customers who transact with private digital currency wallets.
The proposal was criticized by many celebrities in the digital currency industry, including Jack Dorsey, CEO of Square Financial Services. Jack Dorsey said that the addresses and names of partner businesses should not be mandatory for digital currencies, as they are not required for cash.
Critics also argued that many of these projects could not be technically feasible because smart contracts do not contain information such as name and address.
Joe Biden has appointed Janet Yellen as Secretary of the Treasury. A few days ago, Yellen criticized digital currencies, saying that digital currencies were used “mainly for illegal financing.” But Chervinsky says Janet Yellen is not so bad:
First of all, everyone is better than Steven Manuchehr, who long ago decided to hate anything related to digital currencies. Although Dr. Yellen may not be a fan of digital currencies right now, I expect him to be open-minded in learning and listening, and to follow the legal system in deciding new regulations. this is good.
Biden has also appointed Gary Gensler as chairman of the Securities and Exchange Commission, which seems to have a more positive view of the decentralization mission than the previous chairman.