The US branches of Phoenix Wallet and Wasabi Wallet have closed down. American regulators consider non-custodial cryptocurrency wallets as providing money management services. As a result, the creators of Phoenix Wallet and Wasabi Wallet decided to move their operations to a different location to avoid being identified by authorities.

The Phoenix Wallet team highlighted that recent pronouncements from US officials suggest that self-custody wallet providers, Lightning Network software developers, and even Lightning Network nodes might be categorized as money services businesses and subjected to corresponding regulations.