FinCEN withdrew its proposed $10,000 reporting rule for certain cryptocurrency transfers involving unhosted wallets, effective October 6, 2026. The proposal never took effect, so it did not create a new filing requirement for people sending crypto to their own wallets.
What changed
The Financial Crimes Enforcement Network (FinCEN) withdrew its December 2020 notice of proposed rulemaking on October 6, 2026. In its withdrawal notice, the agency said, “FinCEN will take no further action on this NPRM.” Federal Register withdrawal notice
FinCEN said it considered public comments and withdrew the proposal as part of the administration’s deregulatory agenda and effort to ensure digital-asset rules are fit for purpose. That is the agency’s stated rationale; the withdrawal resolves this proposal, not every other rule that may apply to crypto.
What the proposed thresholds would have meant
The proposal would have applied duties to banks and money services businesses (MSBs) for specified transfers of convertible virtual currency or digital assets with legal tender status involving an unhosted wallet, or a wallet at certain foreign financial institutions outside the Bank Secrecy Act regime in a jurisdiction identified by FinCEN. FinCEN described an unhosted wallet as one “when a financial institution is not required to conduct transactions from the wallet.”
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| Proposed trigger | Proposed duty |
|---|---|
| More than $10,000 in a covered transaction, or multiple covered transactions totaling more than $10,000 within 24 hours | Reporting to FinCEN |
| More than $3,000 in a covered transaction | Recordkeeping, including customer identity verification |
These figures were thresholds in FinCEN’s 2020 proposal, as recited in the 2026 withdrawal notice. Neither became an obligation under this proposal.
Does this mean you have to report crypto sent to your own wallet?
This withdrawn proposal did not require individual wallet owners to file a report simply because they moved crypto to a wallet they controlled. It proposed compliance duties for covered banks and MSBs in specified transfers; it never took effect.
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The withdrawal does not determine whether a separate tax, banking, or reporting obligation applies to a particular transaction. Those questions depend on the relevant rule and circumstances, not on this FinCEN proposal.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How this differs from the IRS broker-reporting rule
The FinCEN proposal concerned certain financial-institution transfers involving unhosted wallets under the Bank Secrecy Act. It was not the Treasury and IRS rule on digital-asset broker reporting under tax law.
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| FinCEN wallet proposal | Treasury and IRS broker rule | |
|---|---|---|
| Framework | Bank Secrecy Act | Tax reporting |
| Covered actors | Banks and MSBs | Brokers |
| Subject | Specified transfers involving unhosted wallets | Broker-facilitated digital-asset sales |
| Outcome | Withdrawn effective October 6, 2026; the proposal never took effect | Disapproved by Congress under Public Law 119-5, signed April 10, 2025; Treasury and the IRS said it had no force or effect, and the relevant regulations reverted effective July 11, 2025 |
The two actions concern different rules. The FinCEN withdrawal does not change or settle other tax reporting requirements.
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