Withdrawal ends a six-year-old proposal that never took effect
FinCEN has formally withdrawn a proposed rule that would have required reports on crypto transfers of more than $10,000 to or from unhosted wallets, the agency said in a news release dated 5 October 2026.
The proposal dates to December 2020, in the final weeks of the first Trump administration. It would have obliged banks and money-service businesses, including crypto exchanges, to file reports when customers sent more than $10,000 in crypto to or from wallets the customer controls, with transfers aggregated over 24 hours counting towards the threshold. Firms would also have had to collect information on the customer and on the wallet on the other side of the transfer. The rule never took effect, and it drew thousands of public comments over nearly six years.
A second AML proposal goes with it
FinCEN withdrew a 2023 proposal in the same action. That one would have classified crypto mixing transactions as a primary money-laundering concern, a designation that allows the government to impose additional reporting requirements on financial institutions handling them.
The agency said both withdrawals form part of the Trump administration’s deregulatory agenda and an effort to make digital-asset rules “fit-for-purpose”.
What it changes for firms
Exchanges and banks had spent nearly six years unsure whether the $10,000 reporting regime would be finalised, a compliance question that touched self-custody, a core crypto use case. The withdrawal removes that uncertainty, but it is not a broad deregulation of crypto: existing Bank Secrecy Act obligations remain in place, and only these two proposals were dropped.
