FinCEN withdraws proposed crypto wallet and mixer rules

The Financial Crimes Enforcement Network has filed notices withdrawing two proposed rules that would have expanded reporting and recordkeeping requirements for certain cryptocurrency transactions involving unhosted wallets and mixing. The notices were filed October 5, 2026, and are scheduled for publication in the Federal Register on October 6; neither proposal had become a final rule. One proposal, issued in 2020, would have required banks and money services businesses to collect records and verify customer identities for covered transfers above $3,000 involving unhosted wallets or certain foreign institutions. Transactions exceeding $10,000, including multiple covered transfers totaling more than that amount within 24 hours, would have triggered reporting to FinCEN, a Treasury bureau responsible for enforcing the Bank Secrecy Act. The second proposal followed a 2023 FinCEN finding concerning international convertible virtual currency mixing. It would have required covered financial institutions to report certain transactions they knew, suspected or had reason to suspect involved mixing.