Joe Biden Suspends Tightening Crypto Market Regulation

US President Joe Biden, who took office, suspended the initiatives of the Trump administration,aimed at tightening the regulation of the cryptocurrency market.

US President Joe Biden has frozen all legislative initiatives coming from the administration of his predecessor, Donald Trump. This was reported by the White House press service.

The Network’s initiatives toFinancial Crimes Enforcement Network (FinCEN), which, under the Donald Trump administration, proposed tightening regulation of crypto wallets. Let us recall that in mid-December 2020, the regulator proposed to apply extended know-your-customer (KYC) policy methods in case of withdrawal of funds in the amount of more than $3,000. Transactions over $10,000 are encouraged to be reported directly to FinCEN.

By order of Biden, the regulator will have to report to the new administration on the advisability of such tightening.

Its not worse

The new appointees, however, are also not inferior inskepticism compared to the previous administration. According to former Goldman Sachs partner Gavin Davis, the new head of the US Treasury, Janet Yellen, will turn regulators against the cryptocurrency market.

Davis recalled that while in officeChairman of the Federal Reserve (Fed) in 2017, Yellen called Bitcoin “a very speculative asset.” The other day, Janet Yellen even proposed to “reduce” the use of Bitcoin for anti-terrorism reasons.

During the Trump administration, the Financial Regulation Task Force proposed tightening controls on stablecoins. Whether Biden will leave this proposal in place remains to be seen.

However, representatives of the Democratic Party have alreadytried to continue the aggressive rhetoric of the Trump era, which caused a violent reaction in the cryptocurrency community. Earlier, a member of the Democratic Party and current member of the US House of Representatives, Rashida Tlaib, proposed to oblige the issuers of stablecoins to obtain permission for their activities from banking regulators.

Jeremy Aller, CEO of Circle,The stablecoin issuer USDC, said Tlaib's proposed bill would be "a huge step backward for digital currency innovation in the United States."

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