US Treasury Drops Crypto Reporting Rule for Private Wallets

The U.S. Treasury Department has officially abandoned a proposed rule that would have required banks and crypto businesses to collect and report detailed information for transactions exceeding $10,000 in crypto sent to or from private wallets. The Financial Crimes Enforcement Network (FinCEN) withdrew the rule on Sunday, along with a separate proposal targeting crypto mixers. Neither of these proposals had ever been implemented.

The wallet proposal, which dates back to December 2020, was part of the final weeks of the first Trump administration. It aimed to mandate that financial institutions file reports for transactions over $10,000 involving so-called unhosted wallets, where users control their own private keys. Firms would also have been required to gather information about the customer and the wallet on the receiving end of the transfer.

FinCEN also withdrew a 2023 proposal that sought to classify crypto mixing transactions as a primary money-laundering concern, potentially imposing additional reporting requirements on financial institutions. The agency stated that both withdrawals were part of the Trump administration’s broader deregulatory agenda, aimed at making digital-asset rules more ‘fit-for-purpose.’