The Financial Crimes Enforcement Network (FinCEN) has officially withdrawn two major regulatory proposals concerning the cryptocurrency industry. The agency announced it will take no further action on the 2020 rule regarding unhosted wallets and the 2023 proposal aimed at crypto mixing services.
The 2020 proposal would have required financial institutions to track and report transactions involving self-custodial wallets exceeding $3,000, with mandatory reporting for transfers over $10,000. These measures were intended to extend Bank Secrecy Act requirements to personal digital asset storage.
The second withdrawn proposal sought to classify international crypto mixing as a primary money laundering concern under the USA PATRIOT Act. It would have forced institutions to report specific data, including wallet addresses and IP addresses, for transactions linked to mixing services.
FinCEN cited the July 2025 White House digital asset report as the basis for these decisions. The report emphasizes that the administration supports the right of lawful users to conduct private transactions on public blockchains. Agency officials noted that they will continue to monitor mixers for illicit financial activity.
Industry advocacy group Coin Center, which opposed both measures, welcomed the withdrawal. Executive Director Peter Van Valkenburgh noted that while this is a positive development for privacy, the underlying statutory authority for potential future regulations remains in place.
