FinCEN withdrew from consideration two draft rules at once that could have noticeably strengthened control over cryptocurrency transfers in the US. The first concerned transfers to personal wallets, the second - operations with crypto mixers. Both drafts were under consideration for several years, but never came into force.
What they wanted to introduce for personal wallets
The draft, proposed back in December 2020, concerned transfers to wallets without an intermediary, where the keys are held directly by the owner. Banks and crypto exchanges were supposed to keep additional records for transfers from $3,000. For transfers from $10,000, separate reporting to FinCEN was envisaged. Transfers within 24 hours were supposed to be aggregated, so simply splitting one large sum into several operations would not have changed the requirements. The draft gathered a large number of comments and effectively remained stalled for almost six years.
What they wanted to do with mixers
The second draft appeared in 2023. It proposed recognizing international crypto mixing as a separate zone of increased money laundering risk. Mixing is a set of operations that complicates tracking the origin and further movement of coins. The expanded definition could have covered:
- pooling of funds;
- splitting of transfers;
- use of one-time wallets;
- exchange of one digital asset for another;
- deliberate delays of transactions.
For such operations, financial organizations were supposed to transmit more data about clients and the transfers themselves.
Why the drafts were withdrawn
FinCEN explains the decision by a broader course toward reducing excessive regulation of digital assets. It was separately acknowledged that the previous wording could affect legitimate ways of using privacy and create a significant additional burden for banks and crypto companies. For the draft related to personal wallets, no further actions in their current form are planned.
What changes for users
The withdrawal of the drafts does not mean the cancellation of existing anti-money laundering requirements. Banks, exchanges and other financial organizations are still obliged to comply with existing AML norms and client identification rules. But withdrawing cryptocurrency from an exchange to one's own wallet does not get a separate federal reporting regime just because the amount exceeds $10,000.
What will happen with mixers
FinCEN is not abandoning control over operations that may be used for money laundering. The regulator will continue to monitor crypto mixers and other privacy-enhancing tools. If necessary, the authorities may return to this topic with new proposals or narrower rules.
What's next
Notices of the withdrawal of the drafts were submitted on October 5, 2026. After official publication, both proposals finally cease to be active regulatory drafts. For the crypto market, this means that the US is not yet introducing a separate additional control regime for transfers to personal wallets and is not extending a special regime to the entire class of operations with mixers at once.
Have you calculated what amount to withdraw to your wallet?
For cryptocurrency holders, the rules for storing and withdrawing funds are important, but the result of trading still depends on the size of capital and risk management. In prop trading, the company provides the capital for trades: the trader passes a challenge, complies with established risk limits, and after that gains access to a trading account. It is better to understand the mechanics in advance, rather than already during the next strong market move.