FinCEN Withdraws $10,000 Crypto Wallet Reporting Rule and Mixer Proposal

The Financial Crimes Enforcement Network has withdrawn a years-old proposal that would have required banks and crypto businesses to collect and report more information when customers sent large amounts of crypto to wallets they control themselves. The move came Sunday, and the rule never took effect. First proposed in December 2020, during the final weeks of the first Trump administration, it would have forced banks and money-service businesses such as crypto exchanges to file reports on transfers above $10,000 to or from unhosted wallets, including smaller transfers that crossed the threshold when added up over 24 hours.

Firms would also have had to gather details on the customer and the wallet on the other side. An unhosted wallet is one where a person holds the private keys instead of leaving assets with an exchange or bank. The plan drew thousands of public comments and stayed unresolved for nearly six years.

Crypto Mixer Proposal Withdrawn

FinCEN also pulled a separate 2023 proposal that would have labeled crypto mixing transactions as a primary money-laundering concern. That label would have let the government impose extra reporting requirements on financial institutions handling such transactions.

Deregulatory Agenda and Digital Asset Rules

The agency said both withdrawals are part of the Trump administration’s deregulatory agenda and an effort to make digital-asset rules fit for purpose. For self-custody users and privacy tools, the decision ends a long period of uncertainty.