FinCEN withdraws two proposed crypto rules, including the mixer special measure
The proposals on unhosted wallets and crypto mixing were withdrawn on 5 October 2026 as part of what FinCEN called the administration's deregulatory agenda.
On 5 October 2026, FinCEN announced it is withdrawing two proposed rules about convertible virtual currency (crypto).
The first would have set recordkeeping, verification and reporting requirements for certain crypto transactions, including those involving unhosted wallets (wallets a user controls directly, not held at an exchange). The second would have named crypto mixing (services that blend funds to hide their source) as a class of transactions of primary money laundering concern.
FinCEN said it reviewed the public comments on both proposals and is withdrawing them as part of the administration's deregulatory agenda and its work to make digital asset rules fit for purpose.
Why it matters to AML professionals
Withdrawing a proposed rule does not change the risk. Mixers and unhosted wallets still appear in fraud, scam and sanctions cases, and existing BSA duties such as SAR filing and risk-based monitoring still apply. For crypto-facing AML professionals, the change is that no new rule-specific reporting is coming from these two proposals.
Red flags in this case
- Funds arriving from or sent to known mixing services
- Rapid movement between unhosted wallets before reaching an exchange
- Chain-hopping between assets with no clear economic reason
Sources
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