FinCEN drops crypto rules as China stablecoins surge 43x

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TL;DR: U.S. FinCEN has withdrawn its 2020 unhosted wallet reporting rule and 2023 crypto mixer proposal as the CFTC proposes a federal framework for digital currency exchanges. Chainalysis reports China’s P2P stablecoin wallets grew 43-fold despite restrictions, and the ECB outlined three models for on-chain central bank money.

Key Takeaways:

US FinCEN scraps proposed $10,000 reporting rule for crypto

On October 4, the U.S. Treasury Department dropped two long-stalled crypto proposals.  

The Financial Crimes Enforcement Network (FinCEN), the Treasury’s financial crimes unit, has scrapped proposed digital asset-related rules, one of which dates to December 2020.  

The 2020 proposal would have required banks and digital currency exchanges to report transfers of over $10,000 to or from self-controlled unhosted wallets, including smaller transfers made within 24 hours. With this rule, firms would have had to collect information about the customer and the wallet on the other side of the transfer.

Following its release, the proposal received thousands of public comments and has remained unresolved since 2020.