The U.S. Treasury Department has withdrawn a long-pending cryptocurrency reporting proposal that would have imposed additional requirements on transactions involving self-custody wallets.
The Financial Crimes Enforcement Network (FinCEN) announced Sunday that it had dropped the proposal, along with a separate 2023 measure concerning cryptocurrency mixers. Neither rule was ever implemented.
The self-custody proposal was introduced in December 2020, near the end of Donald Trump’s first administration. It sought to require banks and money-service businesses, including crypto exchanges, to report customer transfers exceeding $10,000 involving “unhosted” wallets.
The threshold would not necessarily have applied to a single transaction. Transfers totaling more than $10,000 over a 24-hour period could also have triggered the reporting requirement.
In addition to filing reports, covered businesses would have been required to collect identifying information about the customer and details concerning the wallet involved in the transfer.
An unhosted wallet is a cryptocurrency wallet controlled directly by its owner through private keys, rather than an account where an exchange or financial institution maintains custody of the assets.
The proposed rule attracted thousands of public comments but remained unresolved for almost six years without taking effect.
FinCEN also withdrew a separate proposal published in 2023 that sought to classify crypto mixing transactions as a category of primary money-laundering concern. That designation could have enabled authorities to impose additional reporting obligations on financial institutions processing transactions involving crypto mixers.
The agency said the decision to withdraw both proposals is consistent with the Trump administration’s broader deregulatory approach. FinCEN also described the move as part of an effort to make digital-asset regulations more “fit-for-purpose.”
