U.S. scraps proposed $10,000 reporting rule for for crypto sent to private wallets
The U.S. Financial Crimes Enforcement Network (FinCEN) has officially withdrawn two proposed rules that would have imposed stricter reporting requirements on cryptocurrency transactions. The scrapped proposals included a $10,000 reporting threshold for transfers to unhosted wallets and a classification of crypto mixing services as money-laundering concerns.
Why it matters
This move signals a significant shift toward a more deregulatory environment for digital assets, potentially reducing compliance burdens for crypto exchanges and individual users.
The Financial Crimes Enforcement Network, or FinCEN, withdrew the rule Sunday along with a separate proposal targeting transactions involving crypto mixers. Neither had ever taken effect.
The wallet proposal dates to December 2020, during the final weeks of the first Trump administration.
It would have required banks and money-service businesses such as crypto exchanges to file reports when customers sent more than $10,000 in crypto to or from so-called unhosted wallets, including transactions that crossed the threshold when added together over 24 hours. Firms would also have had to collect information about the customer and the wallet on the other side of the transfer.
An unhosted wallet is one where a person controls the private keys themselves rather than leaving the assets with an exchange or bank.
The proposal drew thousands of public comments and remained unresolved for nearly six years.
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