FinCEN Abandons $10K Crypto Wallet Reporting Rule and Mixer Proposal

The Financial Crimes Enforcement Network (FinCEN) has withdrawn two proposed rules targeting cryptocurrency transactions. The first proposal, introduced in December 2020, would have required banks and crypto businesses to report transactions exceeding $10,000 involving self-hosted wallets. The second proposal, from 2023, aimed to impose additional reporting requirements on cryptocurrency mixers.

Neither proposal had taken effect, leaving the industry in uncertainty for nearly six years. FinCEN cited the Trump administration’s deregulatory agenda and the need for 'fit-for-purpose' digital-asset rules as reasons for the withdrawals. The moves follow extensive public comments from the crypto industry and other stakeholders.

The proposed $10,000 reporting rule would have applied to transactions above the threshold or those exceeding $10,000 in aggregate over a 24-hour period. Financial institutions would have been required to collect information about the customer and the wallet involved.

The withdrawal of these proposals marks a significant shift in regulatory approach, potentially easing compliance burdens for crypto businesses and users of private wallets.