The U.S. government has abandoned two cryptocurrency regulatory proposals that had remained pending for years, including a measure that would have expanded reporting requirements for transfers involving self-custody wallets.

The Financial Crimes Enforcement Network (FinCEN) withdrew both proposals Sunday. One targeted crypto transactions involving wallets controlled directly by users, while the other focused on cryptocurrency mixing services. Neither proposal had ever entered into force.

The self-custody rule was first proposed in December 2020, during the final weeks of Donald Trump’s first administration. It would have required banks and money-service businesses, including cryptocurrency exchanges, to file reports when customers transferred more than $10,000 in crypto to or from an unhosted wallet.

Transactions could also have triggered the requirement when several transfers collectively exceeded $10,000 within a 24-hour period.

The proposed framework would have gone beyond reporting. Financial institutions and crypto businesses would have been required to collect information about the customer as well as the wallet on the other side of the transaction.

An unhosted wallet refers to a wallet where the user maintains direct control of the private keys and assets, rather than relying on an exchange or bank for custody.

The measure received thousands of public comments and remained unresolved for nearly six years without becoming effective.

Separate Mixer Rule Abandoned

FinCEN also scrapped a proposal published in 2023 that would have treated transactions involving cryptocurrency mixers as a category of primary money-laundering concern.

Under that framework, the designation could have paved the way for additional reporting requirements on financial institutions handling transactions connected to crypto mixers.

FinCEN said the withdrawal of both measures supports the Trump administration’s deregulatory agenda and its effort to establish digital-asset regulations that are “fit-for-purpose.”

The decision ends years of uncertainty surrounding two proposed rules that had drawn significant attention from the crypto industry, particularly over self-custody and privacy-focused transaction services.