The infamous proposal from the US Treasury to request information on the transfer of cryptocurrency from stock exchanges to its own wallets is in force again.
According to an announcement on Tuesday from the Financial Crimes Network or FinCEN, stakeholders will have 60 days to respond to the proposal. Despite a marked improvement during the 15-day discussion period for the original proposal, unfortunately for the crypto industry, it did not appear that the actual terms of the proposal had changed with management.
The news comes on the heels of Janet Yellen’s confirmation of the Treasury’s position last night. Shortly after his inauguration, President Joe Biden ordered a freeze on midnight rules for agencies run by nominees, including the Treasury Department.
FinCEN originally announced its proposal just before Christmas with a comment period that was so limited that the final rule could come before Donald Trump leaves office. It is rumored that this was a direct initiative of Trump’s Treasury Secretary Stephen Mnuchin.
The cryptocurrency community reacted angrily, giving enough feedback and using enough political pressure to force Mnuchin’s treasury to extend the suspension period, effectively handing over the proposal to its successor. Some had hoped that Yellen, who was appointed by Biden as his candidate for secretary of state in November 2020, would be less hostile to cryptocurrencies.
It remains to be seen what happens after the Ministry of Finance receives a new round of comments, but it is not encouraging to return to the rule the first two nights. Interested parties can send comments to FinCEN here.