Andreesen Horowitz (a16z) speaks out against FinCEN's midnight crypto rulemaking

Andreesen Horowitz (a16z) urges Financial Crimes Enforcement Network (FinCEN) to withdraw its proposed KYC rule or extend the comment period due to blatant violation of procedure by Secretary Mnuchin weeks before leaving office.

Andreesen Horowitz (a16z) speaks out against FinCEN's midnight crypto rulemaking

Late on the Friday, December 22, a few days before Christmas and only a month before Secretary Mnuchin’s and the Trump administration leave office, Financial Crimes Enforcement Network (FinCEN) announced sweeping changes in a Notice of Proposed Rulemaking (NPRM) that has the intention to negatively impact the virtual currency industry. The new rule would require various cryptocurrency exchanges to collect and report personal identify information (KYC) on all external wallet holders, a standard applied to no other entity in the financial industry today. Thousands of notable cryptocurrency executives from Binance, Coinbase, Kraken, and the venture community rushed to respond within the comment period of only six business days, despite being perhaps the most significant rule change to impact the crypto industry in a decade. Andreesen Horowitz (a16z) sent this response to Kenneth A. Blanco, the Director of Financial Crimes Enforcement Network (FinCEN), urging them to withdraw its proposed rule or at a minimum extend the comment period so that it can engage in a meaningful consultation with the crypto industry. "The Treasury Department’s FinCEN proposed a rushed, non-vetted rule under the cloak of the holidays that violates the government’s own established rulemaking procedures," said Andreesen in a separate blog post. For the record, we at Redeeem strongly support the stance of a16z and urge FinCEN to at least extend the review period. To leave your comments on the proposed rule, click here.