FinCEN Withdraws $10,000 Wallet Reporting Rule and Mixer Proposal

FinCEN, the Financial Crimes Enforcement Network, announced on Sunday that it is withdrawing two pending regulatory proposals that have lingered for years. The first, a 2020 rule that would have forced banks and money‑service businesses to file reports on crypto transfers exceeding $10,000 to or from self‑controlled, or “unhosted,” wallets, never took effect. The second, a 2023 proposal targeting crypto‑mixing services, would have classified mixing transactions as a primary money‑laundering concern and imposed extra reporting duties.

Background on the Wallet Proposal

The 2020 draft required institutions to collect detailed information about the customer and the destination wallet whenever the aggregate value of crypto moved to or from an unhosted wallet crossed the $10,000 threshold within a 24‑hour period. An unhosted wallet is defined as one where the user holds the private keys rather than a custodial exchange or bank. The rule attracted thousands of public comments and remained unresolved for nearly six years.

Mixer Proposal Details

The 2023 initiative sought to treat crypto‑mixing services as a distinct money‑laundering risk, enabling regulators to demand additional transaction reporting from financial institutions that process mixed coins.

Rationale for Withdrawal

FinCEN said the withdrawals align with the Trump administration’s deregulatory agenda and its effort to craft “fit‑for‑purpose” digital‑asset regulations. Neither proposal had ever been implemented, and the agency opted to remove them from the rule‑making docket.

Key facts

• The $10,000 wallet reporting rule was first introduced in December 2020.
• The mixer proposal was issued in 2023.
• Both proposals never took effect before being withdrawn.
• FinCEN frames the move as part of a broader deregulatory push.
• The agency emphasized a focus on “fit‑for‑purpose” rules for digital assets.