Treasury abandons proposed crypto wallet and mixer reporting rules
The U.S. Treasury has withdrawn two proposed crypto regulations that would have expanded reporting requirements for self-custody wallets and crypto mixers. FinCEN, the Treasury’s financial enforcement arm, filed withdrawal notices on October 5, with formal publication scheduled for October 6.
The first proposal, introduced in December 2020, aimed to require banks and money service businesses to collect information on certain crypto transfers involving self-custody wallets or foreign wallets outside the Bank Secrecy Act framework. Institutions would have kept transaction records for amounts exceeding $3,000 and reported transactions over $10,000 to FinCEN. The withdrawal notice cited the Trump administration’s push for “fit-for-purpose” digital asset regulations and referenced a July 2025 report from the President’s Working Group on Digital Asset Markets.
The second proposal, from October 2023, sought to designate international crypto mixing as a primary money laundering concern under the USA PATRIOT Act. It would have required institutions to report transactions suspected of involving foreign mixing. FinCEN withdrew this proposal, acknowledging concerns that the definition of mixing could discourage legitimate activity and impose substantial compliance costs.
Coin Center, a crypto advocacy group, welcomed the withdrawals, calling them a “major win for financial privacy.” The group had previously opposed both proposals, arguing that they could require institutions to collect excessive personal information and could inadvertently capture domestic transactions. FinCEN maintained that it would continue monitoring for illicit financial activity but would take no further action on the withdrawn proposals.