The US Treasury has withdrawn a plan to track personal crypto wallets, which would have made banks and exchanges record transfers above $3,000 and report those above $10,000.
The Financial Crimes Enforcement Network (FinCEN), Treasury’s anti-money-laundering bureau, said it will take no further action on the 2020 proposal. It dropped a second plan aimed at crypto mixing the same day.
Crypto Privacy Wins?
Personal, or “unhosted,” wallets are apps or devices where people hold their own coins instead of leaving them with a bank or exchange.
Under the 2020 proposal, firms would have verified their customer and kept records when a transfer involving such a wallet topped $3,000.
Transfers above $10,000, or several totaling that in 24 hours, would have triggered a report to FinCEN.
That rule never took effect. FinCEN’s filing says the withdrawal aims to keep digital asset rules “fit-for-purpose,” citing a July 2025 White House crypto report.
“The Trump Administration supports the ability of lawful users of digital assets to privately transact on a public blockchain,” read an excerpt in the FinCEN report.
It takes effect on publication in the Federal Register on October 6.
Why Crypto Mixers Still Face Scrutiny
FinCEN also withdrew a 2023 plan on mixing, which blends many users’ coins to hide where funds came from. Firms would have reported suspected mixing with a foreign link.
Until now, Treasury’s regulatory agenda still listed that rule for final action in December 2027.
FinCEN said commenters warned its mixing definition could chill legitimate activity. However, the bureau said illicit actors still use mixers and that it may act in the future.
Prosecutors are also pursuing the issue in court. Developer Roman Storm faces a Tornado Cash retrial in April 2027 over the Ethereum-based mixing service.
Existing duties such as suspicious activity reports and sanctions screening remain in force. Meanwhile, every Bitcoin transfer still lands on a public ledger, where wallet payments can be traced.
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