The U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) is moving to formally withdraw two proposed crypto reporting rules, ending years of regulatory uncertainty around self-hosted wallets and cryptocurrency mixing. Public inspection notices were posted on October 5, 2026, and both withdrawals are scheduled for publication in the Federal Register on October 6, when they take effect.
The first proposal, originally introduced in 2020, would have applied to transfers between customers of regulated financial institutions and wallets those customers control themselves. For qualifying transactions above $3,000, banks, exchanges and other covered firms would have had to collect and retain counterparty information. Transactions above $10,000 would have also triggered formal reporting requirements. The second proposal, from 2023, would have imposed special reporting and recordkeeping measures on transactions involving convertible-virtual-currency mixing with a foreign connection.
With the withdrawals, no proposal-specific reporting regime will take effect for qualifying self-hosted wallet transfers or for mixer-related activity under these frameworks. However, covered crypto businesses remain subject to existing Bank Secrecy Act and anti-money-laundering obligations, sanctions restrictions and suspicious-activity-reporting duties. Platforms can still monitor transactions, request information, pause activity they consider suspicious and apply their own compliance limits.
The notices end these proposals in their current form. If the Treasury later decides to pursue narrower reporting rules for external-wallet transfers or mixers, it would need to start a new rulemaking process and open it to public comment. For now, the decision removes a specific compliance burden while leaving the broader AML and sanctions framework intact.
