- President Biden has aided crypto wallet holders by freezing a proposed regulation which could otherwise harm the crypto community.
- FinCEN’s proposed regulation will be frozen for 60 days.
- The Biden Admin gives hope for friendlier crypto conditions.
Late in 2020, the Federal Crimes Enforcement Network (FinCEN) issued the controversial proposal. Many crypto holders saw the move as a parting ambush by the Trump admin. Fortunately, Biden has frozen all proposals for 60 days. Consequently, people in the crypto industry are joyful despite the move not being crypto exclusive.
For the crypto industry, this move means two things:
- They can use the likely 30-day commenting period to gain support.
- Moreover, the Biden admin might not be as hostile toward crypto as others assumed initially.
There have been rife fears that the Biden admin would be worse than Trump’s.
The next facts fueled these fears:
- As a senator, Biden pushed two anti-encryption bills. This caused many to believe that he holds a strong anti-crypto bias.
- Also, future Secretary of Treasury Janet Yellen has openly said she is not a fan of Bitcoin. Bitcoin use in “illegal, illicit transactions” is one of her concerns.
Moreover, incoming SEC Commissioner Gary Gensler is likely to be a strong ally. Gensler, a former Goldman Sachs executive, also taught crypto courses at the Massachusetts Institute of Technology (MIT). Hence, crypto holders expected a 2:1 bias against crypto.
For this reason, the crypto industry received the recent move by Biden as a sign that the admin might prove friendly.