The U.S. Financial Crimes Enforcement Network has withdrawn two proposed rules concerning cryptocurrency transactions, ending pending efforts to add requirements around self-custody wallets and crypto mixing. FinCEN announced the withdrawals in a release dated October 5.

One proposal would have imposed recordkeeping, verification and reporting requirements on certain transactions involving convertible virtual currencies and unhosted wallets. These are wallets where users control their own private keys, rather than relying on a bank or exchange to hold assets.

According to CoinDesk, that proposal originated in December 2020 and would have required banks and money-service businesses to report covered transfers exceeding $10,000, including transactions aggregated over 24 hours. It also would have required collecting information about customers and their counterparties.

The second proposal concerned a special measure targeting convertible virtual currency mixing. CoinDesk reports that the 2023 proposal would have classified covered mixing transactions as a category of primary money-laundering concern, enabling additional reporting requirements for financial institutions handling them.

FinCEN said it considered public comments before withdrawing the proposals. The agency described the decision as part of the administration's deregulatory agenda and efforts to make digital-asset regulation fit for purpose.

Neither proposal had taken effect, according to CoinDesk. The distinction matters: this announcement abandons contemplated obligations rather than repealing an operating reporting regime. For wallet developers, exchanges and other crypto infrastructure providers, the concrete change is that these two pending rulemaking efforts will not proceed in their proposed form. The announcement does not establish a general exemption from financial-crime compliance requirements.