Bitcoin Steady Above $85,000 as Treasury Drops Wallet Reporting Plan and CFTC Proposes New Crypto Rules
Bitcoin (BTC) maintained its position above $85,000 on Monday as Washington saw contrasting moves in the crypto regulatory landscape. The Treasury's Financial Crimes Enforcement Network (FinCEN) withdrew a proposed rule from December 2020 that would have required banks and money services businesses to report and keep records of crypto transactions involving self-custodied wallets. The rule, had it taken effect, would have mandated reports for transactions exceeding $10,000 involving unhosted or covered wallets, with record-keeping and identity verification for transactions above $3,000.
FinCEN's decision to withdraw the proposal was tied to a broader policy direction outlined in a report by the President's Working Group on Digital Asset Markets, established under Executive Order 14178. The notice cited the working group's report from July 2025 and the executive order from January 2025, indicating that the move was part of ongoing efforts to ensure digital asset regulations are fit for purpose. Additionally, FinCEN withdrew a second proposal from October 2023 that aimed to designate international convertible virtual currency mixing as a primary money-laundering concern.
Meanwhile, the Commodity Futures Trading Commission (CFTC) proposed its first set of crypto market rules. CFTC Chairman Michael Selig announced the introduction of Regulation CTX and Regulation CAM, aimed at closing gaps in crypto market oversight after the Senate failed to advance the Digital Asset Market Clarity Act (CLARITY Act) last month. Selig stated that the new rules would establish requirements for CFTC-registered exchanges offering crypto assets like Bitcoin and Ethereum (ETH), which had been jointly clarified to fall outside securities law by the CFTC and the SEC.
Unlike the stalled CLARITY Act, the proposed rules would not mandate crypto assets to trade exclusively on CFTC-registered platforms. Instead, they would allow exchanges that choose to register to offer retail customers margined and leveraged trading under a single federal regulatory scheme. Bitcoin's price remained stable during the past 24 hours, with retail sentiment on Stocktwits described as 'neutral' and chatter around BTC shifting to 'normal' from 'low' levels.