The Financial Crimes Enforcement Network (FinCEN) has officially withdrawn two proposed regulatory measures targeting the cryptocurrency sector. This decision aligns with the broader deregulatory agenda currently pursued by the Trump administration to optimize digital asset oversight.
The first withdrawn proposal, dating back to December 2020, aimed to introduce strict recordkeeping, verification, and reporting obligations for transactions involving unhosted wallets. The second proposal, introduced in October 2023, focused on regulating convertible virtual currency mixing services.
FinCEN stated that the proposed rules for mixers could negatively impact legitimate financial activities and impose excessive reporting burdens on covered institutions. The agency reached this conclusion after reviewing public feedback submitted during the consultation periods.
This shift in regulatory policy follows similar moves by other US agencies. For instance, Michael Selig, Chair of the Commodity Futures Trading Commission, recently announced that his agency will utilize existing statutory authorities to manage crypto operations without seeking new mandates from Congress.
