# FinCEN Formally Withdraws Trump-Era Crypto Wallet Reporting Proposal

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/regulation/34276
Published: 2026-10-18T07:13:55.000Z
Updated: 2026-10-18T07:13:55.000Z
Section: Regulation

> The 2020 plan would have required banks and money services businesses to record details about some transfers and report larger transactions.

FinCEN formally withdrew a 2020 proposal for added recordkeeping and reporting on certain crypto transfers involving self-custody wallets. The withdrawal took effect Oct. 6, 2026, and the agency said it would take no further action on the proposal. The rule never took effect.

The proposal would have applied when banks or money services businesses handled covered transactions involving an unhosted wallet or a wallet hosted in a foreign jurisdiction identified by FinCEN. For transactions worth more than $3,000, firms would have kept records including the counterparty’s name and physical address. A transaction above $10,000, or multiple covered transactions totaling more than $10,000 within 24 hours, would have required a report to FinCEN within 15 days of a reportable transaction. Firms also would have verified their own customers’ identities.

An unhosted wallet is one whose private key is controlled by its owner rather than a financial institution. The requirements targeted regulated firms, rather than every person who used such a wallet. They would not have required all wallet owners to register or report transfers directly to the government. The privacy dispute centered on firms collecting identifying details about counterparties who might not be their customers.

FinCEN announced the proposal on Dec. 18, 2020, and published it five days later with an initial 15-day comment period. FinCEN reviewed more than 7,500 submissions from the original period. In January 2021, it reopened comments for 15 days on reporting and 45 days on counterparty records, then set a single deadline 60 days after publication of an extension notice.

The Spring 2024 regulatory agenda had already listed the proposal as withdrawn on April 12, 2024, while the formal withdrawal took effect more than two years later. FinCEN tied the decision to President Donald Trump’s administration’s effort to make digital-asset rules “fit-for-purpose.” When FinCEN introduced the plan, then-Treasury Secretary Steven T. Mnuchin said it addressed “substantial national security concerns in the CVC market.”

FinCEN also withdrew a separate 2023 proposal concerning crypto mixing on Oct. 6. The wallet-rule withdrawal ends that proposed expansion of reporting requirements; it does not change existing Bank Secrecy Act duties.