Trump administration withdraws crypto wallet reporting proposal six years after it was first announced

The Trump administration withdrew a proposal that would have required crypto exchanges and financial institutions to collect user data for self-custodied wallet transactions, ending a regulatory proceeding that began in December 2020. The original rule, justified by national security concerns, would have extended reporting requirements to unhosted wallets, but faced thousands of objections and survived a transition to the Biden administration before being formally reversed in October 2026.