Market Flux Event
US Treasury Withdraws Two Proposed Crypto Surveillance Rules Targeting Unhosted Wallets and Mixers
Read this in the Market Flux appThe US Treasury and its Financial Crimes Enforcement Network formally withdrew two long-pending regulatory proposals targeting cryptocurrency users, ending rulemakings that had drawn significant industry opposition. The decisions were announced on October 5, 2026.
The first withdrawn proposal would have required banks and financial institutions to report and maintain records on crypto transactions involving unhosted wallets above thresholds of $3,000 and $10,000. The second would have expanded reporting requirements for transactions potentially involving foreign cryptocurrency mixers, a practice used to obscure the origin of crypto funds.
The withdrawals are expected to ease compliance burdens on financial institutions and crypto businesses, reduce regulatory pressure on decentralized finance, and signal a more permissive regulatory environment for crypto users in the United States. Analysts note the moves could boost crypto adoption and improve market dynamics, though some uncertainty over the broader direction of US crypto policy remains.
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Sources
- AggrNewsTREASURY WITHDRAWS PROPOSED CRYPTO SURVEILLANCE RULES TARGETING UNHOSTED WALLETS AND CVC CRYPTO MIXING: TREASURY
- DeItaoneTREASURY WITHDRAWS TWO CONTROVERSIAL CRYPTO SURVEILLANCE PROPOSALS The U.S. Treasury has withdrawn two long-pending FinCEN proposals targeting unhosted crypto wallets and cryptocurrency mixing. The wallet proposal would have imposed reporting and recordkeeping requirements on certain transactions above $3,000 and $10,000, while the mixing proposal sought expanded reporting for transactions potentially involving foreign crypto mixers. The withdrawals formally end both proposed rulemakings.
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- AshCryptoBREAKING: 🇺🇸 The US Treasury has withdrawn proposed rules that would have given the government more power to track your crypto transactions from self-custody wallets and mixers.
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- Cointelegraph🇺🇸 JUST IN: U.S. Treasury’s FinCEN withdraws two proposals that would have imposed stricter reporting requirements on crypto transactions involving self-custody wallets and mixers.
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- The BlockTreasury withdraws crypto mixing rule, citing concerns over ‘chilling effect on legitimate activity’