The U.S. Treasury Department has abandoned a proposed reporting requirement that would have made banks and crypto businesses collect and submit additional information on crypto transfers above $10,000 involving customers’ private wallets.
The Financial Crimes Enforcement Network, or FinCEN, withdrew the measure on Sunday, alongside a separate proposal covering transactions involving crypto mixers. According to CoinDesk, neither proposal had taken effect, meaning the decision removes pending regulatory plans rather than changing an active reporting obligation.
What FinCEN withdrew
The wallet proposal was introduced in December 2020, during the final weeks of the first Trump administration. It would have required banks and money-service businesses, including crypto exchanges, to file reports when customers transferred more than $10,000 in cryptocurrency to or from an unhosted wallet.
The threshold could also have been reached through transactions combined over a 24-hour period. Under the proposal, firms would have needed to gather information about both the customer and the wallet on the other side of the transfer.
An unhosted wallet, also known as a self-custodied or private wallet, is controlled directly by its user through private keys. This differs from keeping crypto with an exchange or bank, where the institution holds or manages the wallet infrastructure.
The proposal attracted thousands of public comments and remained unresolved for nearly six years. Its withdrawal means the proposed $10,000 reporting framework will not take effect in the form described by FinCEN.
Separate action on crypto mixers
FinCEN also withdrew a proposal published in 2023 that would have treated crypto mixing transactions as a category of primary money-laundering concern.
Crypto mixers are services designed to combine or obscure the movement of digital assets. The withdrawn measure would have allowed the government to impose additional reporting requirements on financial institutions handling transactions connected with those services.
FinCEN said both withdrawals support the Trump administration’s deregulatory agenda and its effort to create “fit-for-purpose” rules for digital assets. The agency did not put either proposal into effect before withdrawing it.
Moneyiar market picture
Moneyiar data at 10:09 a.m. on October 7, 2026, showed mixed performance among the listed digital assets:
- Sentient (SENT): $0.0254531932, down 0.03% over 24 hours and up 19.87% over seven days.
- Walrus (WAL): $0.0364259877, down 0.44% over 24 hours and up 6.52% over seven days.
- aelf (ELF): $0.0650159551, up 6.01% over 24 hours and 1.56% over seven days.
- Propy (PRO): $0.3611627469, down 3.14% over 24 hours and up 1.68% over seven days.
The FinCEN decision concerns proposed compliance rules rather than the prices of these assets. Its significance is for how U.S. financial institutions and crypto businesses would have handled information collection for self-custodied wallets and mixing services if the proposals had become law.
