US Treasury withdraws crypto wallet tracking proposal
The US Treasury has abandoned a 2020 proposal that would have required banks and exchanges to track and report crypto transfers involving personal, or unhosted, wallets. The plan would have mandated verification for transfers above $3,000 and reporting for those above $10,000 or multiple transfers totaling that amount within 24 hours. The Financial Crimes Enforcement Network (FinCEN) cited the need to keep digital asset rules fit-for-purpose, referencing a July 2025 White House crypto report. The withdrawal takes effect on October 6.
FinCEN also dropped a 2023 proposal targeting crypto mixing services, which blend transactions to obscure their origins. The bureau acknowledged concerns that the proposed rules could stifle legitimate activities but emphasized that illicit actors still use mixers. Prosecutors are pursuing cases related to mixing, including a retrial for Roman Storm, a developer linked to the Ethereum-based mixing service Tornado Cash, scheduled for April 2027.
Despite the withdrawal of these proposals, existing anti-money laundering duties, such as suspicious activity reports and sanctions screening, remain in place. Every Bitcoin transfer continues to be recorded on a public ledger, allowing wallet payments to be traced.