Biden Inaugurated | White House Orders Freeze and Review of New Regulatory Developments, Crypto Industry Breathes a Sigh of Relief on Anti-Money Laundering, Travel Rules

During the Trump administration, the U.S. Department of the Treasury proposed at the end of the year to expand the implementation of the travel rule in the cryptocurrency industry. This move may require U.S. exchanges to verify the identity of users' incoming sources or outgoing destination wallets. Due to the difficulty of implementation and the hasty public consultation period, it has caused a stir in the industry.

After Biden officially took office, the proposal has announced an extension of the public consultation period. Today, on the 21st, the White House issued an order requiring all departments to temporarily halt new regulatory developments pending review by the new administration.

Goodbye Trump! Biden Signs 17 Measures Upon Taking Office

Upon taking office, Biden immediately signed 15 executive orders and 2 executive actions, which included overturning some of Trump's previous orders such as withdrawing from the World Health Organization, exiting the Paris Climate Agreement, and the construction of the US-Mexico border wall. Of particular relevance to the cryptocurrency industry is the freezing of regulatory rules that were being developed during Trump's term.

Proposal to Expand Travel Rules to Be Suspended

Jake Chervinsky, General Counsel at DeFi lending protocol Compound, stated:

"President Biden has frozen all ongoing regulatory developments, including former Treasury Secretary Mnuchin's proposal on non-custodial wallets. We fought hard and finally got a breather. The new Treasury Secretary Yellen is not like Mnuchin. I am optimistic about this."