The U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) is withdrawing two proposed cryptocurrency rules: one that would have imposed recordkeeping, verification, and reporting requirements on certain transactions involving convertible virtual currencies and unhosted wallets, and another that would have imposed a special measure with regard to convertible virtual currency mixing. Among the withdrawn measures is a plan that would have required banks and cryptocurrency businesses to report transactions of more than $10,000 involving customers’ self-hosted crypto wallets.

FinCEN, a bureau of the U.S. Treasury Department that administers anti-money-laundering rules across the financial system, first put the reporting requirement forward in December 2020. Under the proposal, financial institutions and money services businesses—including cryptocurrency exchanges—would have been required to report transfers above the $10,000 threshold to or from unhosted wallets, commonly known as self-hosted wallets, which are crypto wallets controlled directly by their users rather than by a custodial platform. The threshold would have covered transfers above the limit as well as transactions that exceeded $10,000 in aggregate over a 24-hour period. Firms would additionally have been required to collect information about both the customer and the wallet involved in a covered transaction—in effect extending verification duties to wallets that sit outside the platforms firms operate.

In a separate action, FinCEN also withdrew a 2023 proposal that would have imposed additional reporting requirements on transactions involving cryptocurrency mixers. Mixers are services that pool and blend digital assets from multiple users, making it harder to trace the origin of funds on public blockchains. With the withdrawal, no mixer-specific reporting requirements will be introduced through that measure.

Neither proposal had taken effect before being withdrawn, having remained pending since 2020 and 2023 respectively. The decision ends nearly six years of uncertainty around the proposed reporting requirements, which attracted thousands of public comments from the cryptocurrency industry and other stakeholders. For the banks, exchanges, and money services businesses that would have been subject to the rules, the withdrawal closes out reporting, recordkeeping, and verification obligations that never came into force.

According to FinCEN, the withdrawals form part of the Trump administration’s broader de-regulatory agenda and its efforts to establish digital-asset rules that are “fit-for-purpose.” That framing points to continued digital-asset rulemaking efforts under that standard, even as the bureau steps back from these two pending proposals.

BitcoinKE reported the development on Oct. 6, 2026.

Source: BitcoinKE