Feds Scrap Crypto Wallet Spy Rules: Blockchain Breather!
Published Date: 10/6/2026
Proposed Rule
Summary
FinCEN is officially dropping a plan that would have made banks and money service businesses report and verify big digital currency transactions involving certain wallets. This means no new rules or extra paperwork for transactions over $3,000 or $10,000 involving unhosted or special foreign wallets. The withdrawal takes effect on October 6, 2026, so businesses can breathe easy and keep things as they are.
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Planned crypto reporting rules withdrawn
FinCEN withdrew a proposed rule, effective October 6, 2026, that would have required banks and money service businesses (MSBs) to file reports when a transaction involving convertible virtual currency or legal-tender digital assets with an unhosted or covered wallet exceeded $10,000 (or aggregated over $10,000 in 24 hours). The proposal also would have required banks and MSBs to keep records and verify customer identity for such transactions over $3,000. FinCEN will take no further action on that proposed rule.
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Key Dates
Department and Agencies
Related Federal Register Documents
2026-20429, Proposal of Special Measure Regarding Convertible Virtual Currency Mixing, as a Class of Transactions of Primary Money Laundering Concern; Withdrawal
FinCEN has decided to cancel its earlier plan to crack down on international virtual currency mixing by imposing extra rules to stop money laundering. This change means businesses dealing with virtual currencies won’t face new recordkeeping or reporting requirements from this proposal. The withdrawal takes effect on October 6, 2026, so affected companies can breathe easy for now.
2026-16576, Beneficial Ownership Information Reporting Requirement Revision
FinCEN is issuing this final rule to adopt as final and with certain limited changes the interim final rule issued on March 26, 2025, which narrowed beneficial ownership information (BOI) reporting requirements under FinCEN's regulations implementing the Corporate Transparency Act (CTA). In particular, this final rule not only continues to exempt reporting companies from having to report the BOI of U.S. person beneficial owners and U.S. person beneficial owners from having to provide BOI to reporting companies; it also exempts reporting companies from having to submit information about their U.S. person company applicants to FinCEN and exempts U.S. person company applicants from any obligation to provide their information. In addition, the final rule exempts all U.S. persons from the requirement to update information already provided to FinCEN in connection with obtaining a FinCEN identifier (FinCEN ID).
2025-05199, Beneficial Ownership Information Reporting Requirement Revision and Deadline Extension
FinCEN is changing the rules about who has to share ownership info under the Corporate Transparency Act. Now, only foreign companies must report their beneficial owners, while U.S. companies are off the hook. Plus, foreign companies get more time—until March 26, 2025—to file or update their reports, making it easier and less costly to comply.
2026-20371, Proposal of Special Measure Prohibiting the Transmittal of Funds Regarding Transactions Involving the A7 Network's Sub-Agents
FinCEN wants to stop money transfers linked to the A7 Network’s sub-agents, who help shady groups like those tied to Russia and Iran move dirty money. This rule would affect banks and financial institutions by banning certain transactions to fight illegal money flows. Comments on this proposal are open until November 4, 2026, so speak up before then!
2026-18194, Geographic Targeting Order Imposing Recordkeeping and Reporting Requirements on Certain Money Services Businesses Along the Southwest Border
FinCEN is issuing this Geographic Targeting Order, requiring certain money services businesses along the southwest border of the United States to report and retain records of transactions in currency of $1,000 or more, but not more than $10,000, and to verify the identity of persons presenting such transactions.
2026-16365, Geographic Targeting Order Imposing Recordkeeping and Reporting Requirements on Certain Financial Institutions in Minnesota
FinCEN is issuing this Geographic Targeting Order, requiring banks and money transmitters located in the Counties of Hennepin and Ramsey, Minnesota to retain and report records of certain payments of $3,000 or more.
Previous / Next Documents
Previous: 2026-20429, Proposal of Special Measure Regarding Convertible Virtual Currency Mixing, as a Class of Transactions of Primary Money Laundering Concern; Withdrawal
FinCEN has decided to cancel its earlier plan to crack down on international virtual currency mixing by imposing extra rules to stop money laundering. This change means businesses dealing with virtual currencies won’t face new recordkeeping or reporting requirements from this proposal. The withdrawal takes effect on October 6, 2026, so affected companies can breathe easy for now.
Next: 2026-20466, Adviser and Regulated Fund Custody Rules; Crypto Custody Rules
The SEC is updating rules for how investment advisers and funds handle crypto assets, making sure they keep these digital investments safe and properly reported. These changes affect advisers, funds, and anyone managing crypto securities, aiming to modernize rules and improve transparency. Comments on the proposal are open until December 7, 2026, so get ready to weigh in!