FinCEN pulled back a 2020 proposal that would have compelled banks and crypto firms to report transfers exceeding $10,000 involving customers’ self‑custodied wallets.
The agency also abandoned a 2023 proposal that would have imposed extra reporting on transactions using crypto mixers.
FinCEN said the withdrawals, which never took effect, furthered the Trump administration’s deregulatory push and its aim to craft “fit‑for‑purpose” digital‑asset rules.
The U.S. Treasury Department has discarded a long‑standing proposal that would have required banks and crypto businesses to gather and file additional data when customers moved large amounts of crypto to wallets they control themselves.
The Financial Crimes Enforcement Network, or FinCEN, rescinded the rule on Sunday together with a separate measure targeting crypto‑mixer transactions. Neither rule ever became effective.
The wallet proposal originated in December 2020, during the final weeks of Trump’s first term.
It would have obligated banks and money‑service providers such as crypto exchanges to file reports when customers sent or received more than $10,000 in crypto to or from so‑called unhosted wallets, including cases where multiple transactions crossed the $10,000 threshold within a 24‑hour period. Firms would also have needed to collect details about the customer and the counterpart wallet.
An unhosted wallet is one where an individual holds the private keys directly, rather than storing assets with an exchange or bank.
The proposal generated thousands of public comments and remained pending for almost six years.
FinCEN also withdrew a 2023 proposal that would have labeled crypto‑mixing transactions as a primary money‑laundering concern, giving the government authority to enforce extra reporting on institutions that handle them.
The agency said both withdrawals were part of the Trump administration’s deregulatory agenda and an effort to make digital‑asset rules “fit‑for‑purpose.”
As stablecoins move into regulated finance, APAC is becoming a key proving ground. This report maps the region’s rules, use cases, and RLUSD’s role.
Why it matters:
As stablecoins move into regulated finance, APAC is becoming a key proving ground. This report maps the region’s rules, use cases, and RLUSD’s role.
