US Treasury drops proposed $10,000 crypto wallet reporting rule

The U.S. Treasury Department has abandoned a 2020 proposal that would have required banks and crypto businesses to report transfers of more than $10,000 involving self-controlled wallets. The Financial Crimes Enforcement Network (FinCEN) withdrew the rule alongside a separate 2023 proposal targeting transactions involving crypto mixers. Neither of these proposals had taken effect.

The 2020 rule, introduced during the final weeks of the first Trump administration, aimed to collect more information when customers sent large amounts of crypto to or from unhosted wallets. Unhosted wallets are those where individuals control their private keys rather than leaving assets with an exchange or bank. The proposal drew thousands of public comments but remained unresolved for nearly six years.

FinCEN also withdrew a 2023 proposal that would have classified crypto mixing transactions as a primary money-laundering concern, potentially imposing additional reporting requirements on financial institutions. The agency stated that both withdrawals aligned with the Trump administration’s deregulatory agenda and efforts to create “fit-for-purpose” digital-asset rules.