The U.S. Treasury Department is walking away from two long-standing regulatory proposals that would have imposed new reporting and record-keeping obligations on financial institutions handling cryptocurrency transactions tied to mixing services and self-hosted wallets.

The Financial Crimes Enforcement Network, the Treasury bureau charged with combating money laundering, said on October 5 that it is withdrawing a 2023 proposal targeting international crypto mixing as well as a 2020 measure aimed at unhosted wallets. The decision, set to be formally published in the Federal Register on October 6, leaves existing compliance duties for banks, exchanges and money services businesses unchanged because neither rule was ever finalized.

The 2023…