The US Treasury Department’s now-infamous plan to demand reports on crypto transactions from exchanges to self-hosted wallets is back in action.
Stakeholders will have another 60 days to respond to the plan by Tuesday’s announcement from the Financial Crimes Compliance Network or FinCEN. Although a marked upgrade over the 15-day comment period on the initial plan, sadly for the crypto sector, does not appear to have changed the exact terms of the proposal along with the government.
The news follows Janet Yellen’s appointment last night as Secretary of the Treasury. Shortly after his inauguration, President Joe Biden ordered the freezing of all midnight laws by departments run by appointees—including the Treasury.
FinCEN first announced a plan shortly before Christmas, with a wildly truncated comment duration, so that the final rule could come out before Donald Trump left office. It was rumored to be the initiative of Trump’s treasury secretary, Steven Mnuchin himself.
The Crypto community responded with anger, making enough remarks and using enough political momentum to get Mnuchin’s Treasury to prolong the comment period, essentially handing the plan over to its successor. Some hoped that Yellen, who Biden had nominated as his Treasury Secretary back in November 2020, would be less antagonistic to crypto.
It remains to be seen what happens when the Treasury collects another round of feedback, but the return to this regulation on Yellen’s first official day at work is not a reason for hope. Involved parties can apply comments here to FinCEN.
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