According to Decrypt, the U.S. Treasury Department withdrew two prior proposals related to cryptocurrency transaction oversight. One proposal from 2020 aimed to require tracking of transactions involving self-custodial wallets—those not stored by a third-party service provider. A separate plan from 2023 sought to treat crypto mixing services as a primary money laundering concern under regulatory guidance. Both measures were formally withdrawn or rescinded by the Treasury. The documents referenced concerns about emerging tools used to obscure transaction trails, including self-custodial wallets and services that mix digital assets. No details were provided on implementation timelines, enforcement mechanisms, or public comment processes for the withdrawn proposals. The withdrawal does not indicate a new policy direction; it only reflects the removal of those specific regulatory approaches. FinCEN issued the 2020 proposal and later developed the 2023 plan. Neither proposal had been finalized into binding rules at the time of withdrawal.
