Some reports suggest that the United States will have a better approach to cryptocurrencies in the future.
- Before leaving the White House, Donald Trump ordered the pardon of many people, including Ken Kurson, a former Ripple board member and founder of Modern Consensus.
- New US president Joe Biden has suspended all federal legislative processes, including the proposed Financial Crimes Network (FinCEN) Act. As a result the law required cryptocurrency service providers to enforce strict authentication policies.
- The new US president is set to appoint Michael Barr, a former director of cryptocurrencies, as head of the US Currency Control Authority (OCC). Mr. Barr has previously served on Ripple’s board of directors.
US viewpoint of cryptocurrency
What is the status of authentication for digital personal wallets?
According to Cointelegraph, one of the first steps taken by the new US president Joe Biden on his first day in office was to stop the process of legalizing the authentication of insecure cryptocurrency wallets. The former US Treasury Secretary Steven Mnuchin introduced the law.
The White House has sent the source of this newsletter 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 cryptocurrency wallets but will suspend all legal action in this regard for 60 days from the date of this letter.
Activists in the cryptocurrency industry supported the move. Jake Chervinsky of Compound tweeted: “We fought hard and got the right to breathe and restart.”
Biden has also appointed Gary Gensler as chairman of the Securities and Exchange Commission. He is a knowledgeable person in the field of cryptocurrencies. It seems to have a more positive view of the decentralization mission than the previous chairman.
Authentication for digital wallets
What are the functions of the US currency controller?
According to the Cointelegraph and quoted by the Wall Street Journal, a former member of Ripple‘s board of directors is likely to head the agency. The US Currency Controller is one of the most important financial regulators.
The Wall Street Journal reports that insiders expect former Treasury Secretary Joe Biden to be appointed to oversee national banks. The foreign exchange regulator acts as the director of the federal banking system. Also, he is the chief executive of the foreign exchange regulator. The Wall Street Journal cites the official as one of the most powerful banking lawmakers.
If confirmed, Michael Barr would be the second person to be appointed to a key government position after Brian Brooks with experience in cryptocurrencies. Michael Barr was appointed to the RippleLabs Advisory Board in 2015. At that time, he was very enthusiastic about strengthening innovation in the payment field and said in this regard:
“Our global payment system is old. I think payment innovation can help create a more secure financial system, reduce costs, and improve the access and efficiency of consumers and businesses alike.”
US currency controller
What were the proposed US regulations for payment services jobs?
On December 21, 2021, the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) announced proposed regulations for monetary service occupations, including cryptocurrency exchanges. The order was about collecting identity information about people who deal with their customers. The proposed regulation requires foreign exchange hosts to keep their cryptocurrency wallet data. Also in some cases, they should over it to the government. For example, when the dollar value of trades in a day is more than a certain threshold.
In the latest news, the White House has sent letters to the heads of various federal agencies. The letter also orders the cessation of some legal proceedings, including the Financial Crimes Network (FinCEN). The decree does not specifically address the proposed digital currency wallets but will suspend all legal action for 60 days from the date of the letter.