On October 5, 2026, the U.S. Financial Crimes Enforcement Network (FinCEN) withdrew two proposed rules concerning cryptocurrency transactions: one involving unhosted wallets and one involving crypto mixing. The withdrawals end those specific rulemakings; they do not repeal final rules or eliminate other legal obligations that may apply to financial institutions or particular activity.
What FinCEN withdrew
FinCEN, a bureau of the U.S. Treasury Department, announced that it would take no further action on its proposed unhosted-wallet rule. In a separate notice, it withdrew both its finding that international convertible virtual currency (CVC) mixing was a class of transactions of primary money laundering concern and the proposed special measure associated with that finding. These were proposals, not final rules, so “withdrawn proposals” is more accurate than “repealed rules.” FinCEN’s October 5 announcement and the unhosted-wallet withdrawal notice and mixer withdrawal notice describe the actions.
As an Amazon Associate I earn from qualifying purchases.
What the unhosted-wallet proposal would have required
The 2020 proposal applied to banks and money services businesses (MSBs), not directly to every person using a self-custody wallet. It covered certain CVC or legal-tender digital-asset transactions involving an unhosted wallet, or a covered wallet at a foreign financial institution identified by FinCEN. The withdrawal notice describes an unhosted wallet as one for which a financial institution is not required to conduct transactions. FinCEN’s withdrawal notice
The Tool Desk
Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →| Proposed transaction level | Proposed obligation |
|---|---|
| More than $10,000, including multiple transactions aggregating to more than $10,000 within 24 hours | Reporting and customer identity verification by covered financial institutions. FinCEN’s withdrawal notice |
| More than $3,000 involving an unhosted or otherwise covered wallet counterparty | Recordkeeping and identity verification by covered financial institutions. Proposal details |
Treasury presented the proposal as a way to increase transparency and assist law enforcement. Then-Treasury Secretary Steven T. Mnuchin said it aimed to close gaps in recordkeeping and reporting that malign actors could exploit. Treasury’s 2020 announcement
#1 Best Overall
- Effortlessly build your crypto portfolio via the all in one Ledger Wallet app: buy, sell, send, receive, swap, stake and more across popular blockchains. 15,000+ coins & tokens in a single dashboard. Keep a close eye on the market. Compare service providers. Track performance. Get timely alerts. Build your portfolio with confidence.
- Enjoy Bluetooth connectivity, iOS access, and hours of battery use with this mobile-first, secure backup signer. Freedom you can depend on.
- Genuine Check: confirm your signer is authentic during setup with the Ledger Wallet app.
- Protect your signer: keep it in mint condition at all times with a bespoke Pod or Case to avoid scratches and everyday wear and tear.
What the mixer proposal would have covered
FinCEN’s October 2023 proposal would have required covered financial institutions to report and retain information about certain CVC transactions they knew, suspected, or had reason to suspect involved mixing within or involving a jurisdiction outside the United States. Its activity-based definition focused on obscuring a transaction’s source, destination, or amount, regardless of the protocol or service used. FinCEN’s proposed rule
Examples in the proposal included pooling funds, algorithmically structuring transactions, splitting transfers across independent transactions, creating and using single-use wallets, exchanging CVC or other digital assets, and delaying transactions at a user’s direction. Its definition of a “CVC Mixer” also encompassed a person, group, service, code, tool, or function that facilitated mixing. FinCEN’s withdrawal notice
Rank #2
- Proven security at scale: Over 9 years and millions of cards issued with no known remote hacks, while military‑grade EAL6+ security keeps your private keys locked inside the chip. Your cryptocurrencies stay strongly protected from online attackers.
- Tap once to manage your entire crypto wallet across 90 blockchains - no USB cables or Bluetooth, no batteries, no setup. Access 14,100+ coins & tokens, DeFi, NFTs, and staking instantly from your phone
- Smart backup: Use your second Tangem Wallet as your Backup keys with end‑to‑end encryption; no more papers, pictures. If one card is lost, the remaining can still restore full access, with an optional seed phrase available for advanced users.
- Engineered to last up to 25 years: Waterproof (IP69K), shockproof and tested for extreme temperatures from −25°C to 50°C. A durable cold wallet with long‑term protection and independently audited security.
- Trusted by 6 million users worldwide - buy, sell, swap, stake, and spend cryptocurrency directly. The secure offline storage wallet designed for how people actually use crypto wallets
Reports contemplated by the proposal would have included the amount and type of asset transferred, mixer and wallet details, transaction hashes, dates, IP addresses, and a narrative. The proposal also contemplated records with customer identity and contact information. FinCEN’s withdrawal notice
Do these 3 things before closing this tab:
1Clear out junk files and repair common Windows errors2Scan for outdated or missing drivers - takes under a minute3Repair Windows errors before they cause bigger problemsHow the two proposals differed
| Unhosted-wallet proposal | Mixer proposal | |
|---|---|---|
| Covered entities | Banks and MSBs. FinCEN’s withdrawal notice | Covered financial institutions. FinCEN’s withdrawal notice |
| Trigger | Specified transactions involving an unhosted or other covered wallet counterparty, with proposed $3,000 and $10,000 thresholds. FinCEN’s withdrawal notice | Specified transactions suspected of involving mixing within or involving a jurisdiction outside the United States. FinCEN’s proposed rule |
| Information contemplated | Reporting, recordkeeping, and identity verification, depending on transaction amount. Proposal details | Transaction, mixer, wallet, IP-address, and customer information, plus a narrative. FinCEN’s withdrawal notice |
| Withdrawal notice rationale | The notice says FinCEN will take no further action on the proposed rule. FinCEN’s withdrawal notice | FinCEN cited commenters’ concerns that the broad definition could chill legitimate activity and create a large reporting burden for covered institutions. FinCEN’s withdrawal notice |
Why Treasury treated mixing and self-custody as policy concerns
Treasury’s 2024 National Money Laundering Risk Assessment describes mixers as used by cybercriminals, ransomware actors, darknet-market participants, and others, with case examples involving ChipMixer and Tornado Cash. It also notes that transfers between self-custodied wallets can take place without an intermediary financial institution subject to AML/CFT duties, while public blockchains may offer some transparency. These are Treasury’s risk assessments and case descriptions; they do not establish that every mixer or self-custody transaction is illicit. Treasury’s 2024 assessment
Rank #3
- Unparalleled Security: Protect your assets with EAL 6+ Secure Element, offering robust defense and complete transparency
- Simple & Secure Interface: Manage your digital assets easily with a clear OLED screen for secure on-device confirmations
- Supports 1000s of Coins & Tokens: Securely handle thousands of assets, including Bitcoin, Ethereum, and more, all in one wallet
- Effortless Asset Management: Monitor and transact seamlessly with Trezor Suite, our intuitive desktop and mobile app
- Enhanced Backup Solution: Multi-share Backup eliminates single points of failure for secure cold wallet recovery
The same assessment said ChipMixer was responsible for laundering “more than $3 billion worth of virtual assets,” describing a Department of Justice action announced in March 2023. It also said the Tornado Cash indictment alleged the mixer facilitated “more than $1 billion in money laundering transactions,” describing an August 2023 indictment. Those figures are attributed to Treasury’s assessment and relate to the cited cases; they are not measures of how effective the withdrawn proposals would have been. Treasury’s 2024 assessment
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What the withdrawals mean for wallet users and mixer activity
The unhosted-wallet proposal would have placed specified reporting, recordkeeping, and identity-check duties on covered financial institutions. Its withdrawal therefore means those proposed duties will not take effect through that rulemaking; it was not a general filing requirement for every self-custody wallet user in the first place. The notices do not establish that other Bank Secrecy Act, sanctions, or other requirements have disappeared.
Rank #4
- UNPARALLELED SECURITY: Protect your assets with Trezor Safe 5's NDA-free EAL 6+ Secure Element, offering robust defense and complete transparency.
- EFFORTLESS NAVIGATION: Experience seamless crypto management with the vibrant color touchscreen, designed for intuitive and user-friendly interactions.
- ENHANCED USER EXPERIENCE: Enjoy tactile confirmation with Trezor Touch Haptic Engine, making each interaction precise and engaging.
- SUPPORTS 1000s OF COINS & TOKENS: Securely handle thousands of assets, including Bitcoin, Ethereum, and more, all in one wallet.
- EASY ASSET MANAGEMENT: Monitor and transact seamlessly with Trezor Suite, our user-friendly desktop and mobile app
FinCEN says it will continue monitoring mixer activity and may take appropriate steps in the future. Withdrawal of this proposed measure does not determine the legal status of every mixer or transaction; that depends on the activity and any other applicable law. FinCEN’s unhosted-wallet withdrawal notice FinCEN’s mixer withdrawal notice
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
