🔐 U.S. TREASURY DROPS PROPOSED RULES TARGETING SELF-CUSTODY WALLETS AND MIXERS

The U.S. Treasury's Financial Crimes Enforcement Network has withdrawn two long-running crypto proposals.

The first targeted transactions involving:

SELF-CUSTODY WALLETS

Under the 2020 proposal, banks and money-service businesses would have faced additional recordkeeping and identity-verification requirements for certain transfers involving unhosted wallets.

The proposal included:

• Recordkeeping above $3,000
• Reporting requirements above $10,000
• Additional counterparty information requirements

FinCEN has now withdrawn the proposal without turning it into a final rule.

The agency also withdrew a separate 2023 proposal targeting:

CRYPTO MIXING TRANSACTIONS

That proposal would have treated certain mixing activity as a class of transactions of primary money-laundering concern.

Important:

This does NOT eliminate existing U.S. AML, sanctions or suspicious-activity requirements.

Regulated exchanges and financial institutions still have compliance obligations.

And FinCEN can propose different rules in the future.

But two proposals that had hung over Bitcoin self-custody and privacy tools for years are now officially being abandoned.

For Bitcoin, the distinction matters.

Holding your own keys remains one thing.

Requiring financial institutions to report additional information simply because funds move to self-custody would have been another.

That specific framework is now off the table.

@BitcoinNews