TLDR FinCEN has withdrawn two proposed crypto rules covering mixers and unhosted wallets. The unhosted wallet rule was first proposed in December 2020, and the mixer rule in October 2023. Fin
The US Treasury’s Financial Crimes Enforcement Network, known as FinCEN, has withdrawn two proposed rules aimed at the crypto industry. The agency announced the move in a notice on Monday, October 5, 2026.
One rule dealt with crypto mixing services. The other covered transactions involving unhosted wallets.
FinCEN said the decision is part of the Trump administration’s deregulatory agenda. It also said the move supports efforts to make sure digital asset rules are “fit-for-purpose.”
The first proposal dates back to December 2020. It would have placed “recordkeeping, verification, and reporting requirements” on certain crypto transactions involving unhosted wallets.
Unhosted wallets are crypto wallets that users control directly. No bank or exchange holds the funds for them.
The second proposal was first put forward in October 2023. It would have imposed a special measure on what FinCEN calls “convertible virtual currency mixing.”
Crypto mixers are services that blend funds from many users. This makes it harder to trace where the coins came from.
In its notice, FinCEN said the mixer rule “could have a chilling effect on legitimate activity.” The agency added that it could “place a large reporting burden on covered financial institutions.”
FinCEN said it reviewed the public comments it received on both proposals. It then decided to withdraw them.
Several crypto and blockchain advocacy groups welcomed the decision. Many had opposed the reporting rules for mixers and unhosted wallets.
The Crypto Council for Innovation shared its view in a post on X on Monday. The group called FinCEN’s move “positive for the digital asset ecosystem.”
FinCEN’s action follows a series of steps by US agencies that oversee crypto. Many of these steps have cited the Trump administration’s crypto agenda.
On the same day, Commodity Futures Trading Commission Chair Michael Selig made his own announcement. He said the CFTC would use its “existing statutory authorities” to propose two new rules.
Those rules would set out how crypto companies could operate under the CFTC’s oversight. Selig said the agency could do this without extra authority from Congress.
FinCEN’s withdrawal notice was posted Monday on the Federal Register’s public inspection site. With the notice, neither proposal is moving forward at the agency.
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