U.S. Withdraws $10,000 Reporting Rule for Private Crypto Wallets

Rule Withdrawn

The U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN) formally withdrew two proposed rules that would have imposed new reporting obligations on cryptocurrency transactions sent to private wallets.

The first proposal, floated in 2021, sought to require banks and money services businesses to report crypto transfers exceeding $10,000 to self-custody wallets. The second targeted transactions involving privacy-focused mixers.

Years of Uncertainty

Both proposals had remained in draft form for years, drawing sharp criticism from industry groups, privacy advocates, and lawmakers who argued they would chill innovation and burden legitimate users.

No final versions were ever published, leaving the rules in regulatory limbo until now.

Industry Reaction

Crypto advocates hailed the withdrawal as a win for user privacy and decentralized finance development. Legal experts noted the move removes a key source of ambiguity for businesses navigating anti-money laundering compliance.

The withdrawal does not preclude future rulemaking, but signals a shift away from expansive transaction-level oversight of self-custody activity.

Source: CoinDesk