US Withdraws Proposals for Additional Controls on Crypto Transactions

The United States has withdrawn two proposals for additional controls on crypto transactions. These plans would have required financial companies to collect more data on payments made with crypto. The decision affects users who manage their own crypto and also involves a proposal for additional notifications regarding services that make transactions harder to trace. The US regulator FinCEN announced the withdrawal on October 5. The proposals concerned self-custodied crypto wallets and crypto mixers. Existing obligations for financial companies remain in effect. FinCEN, part of the US Department of the Treasury, reported that the proposals were withdrawn after reviewing the feedback received. The first proposal, from 2020, required banks and certain financial companies to record additional data for transactions involving self-managed wallets. The second proposal, from 2023, focused on crypto mixers, which mix transactions and make them harder to trace. The withdrawn plan would have required additional notifications from financial institutions for transactions involving mixers. FinCEN places these withdrawals within the Trump administration's policy to better align regulations with digital assets. The decision means that the planned additional controls will not proceed, but it is not a blanket exemption from oversight.

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