U.S. Treasury’s FinCEN Withdraws Reporting Proposals on Self-Hosted Wallets and Crypto Mixing Transactions

The U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) withdrew two proposals on October 5: one that would have required financial institutions to report crypto transfers involving self-hosted wallets and exceeding $10,000, and another that would have required additional recordkeeping and reporting for transactions involving international mixing. Neither proposal took effect. The withdrawal of the mixing proposal became effective on October 6, 2026, and financial institutions’ existing compliance obligations remain unchanged. FinCEN said the withdrawal was due in part to overly broad definitions, the reporting burden on businesses, and a July 2025 White House report acknowledging that mixing has legitimate privacy uses.