FinCEN withdraws proposed digital asset rules for U.S. financial institutions

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Olga Shendetskaya

05.10.2026

FinCEN withdraws proposed digital asset rules for U.S. financial institutions — FinCEN scraps crypto rules

The U.S. anti-money laundering regulator is scrapping two proposed digital asset rules that would have added compliance obligations for financial institutions handling certain convertible virtual currency activity. The move covers proposals tied to unhosted wallets and virtual currency mixing, and reflects the Trump administration's broader deregulatory push.

Highlights

FinCEN has withdrawn proposals requiring recordkeeping, verification, and reporting for transactions involving convertible virtual currencies and unhosted wallets.
A separate proposal imposing a special measure on convertible virtual currency mixing has also been withdrawn after public comment review.
FinCEN's decision reflects a broader deregulatory policy shift, delaying new compliance obligations for U.S. financial institutions in the digital asset sector.

Withdrawn proposals and regulatory scope

As announced by FinCEN, the agency is withdrawing a proposal that would have required recordkeeping, verification and reporting for certain transactions involving convertible virtual currencies and unhosted wallets. It is also withdrawing a separate proposal that would have imposed a special measure related to convertible virtual currency mixing.

The agency says the proposals would have created specific regulatory requirements for financial institutions dealing with certain digital asset activity. FinCEN says it reviewed comments submitted in response to both proposals before deciding to withdraw them.

Policy shift for the digital asset sector

FinCEN says the withdrawals are part of the Trump administration's deregulatory agenda and a broader effort to ensure digital asset regulations are fit for purpose. The decision signals a lighter regulatory approach toward parts of the U.S. digital asset compliance framework that had been under consideration.

For the financial and digital asset sectors, the move removes the prospect of additional near-term obligations tied to unhosted wallets and mixing-related controls under these proposals. It also suggests regulators are reassessing how anti-money laundering rules should be applied to evolving digital asset activity.

In our previous coverage of the Philippines joining an Asian Development Bank technical assistance program, we explained how the country is strengthening anti-money laundering and counter-terrorism financing controls to stay aligned with international standards. The initiative focuses on improving legal frameworks, agency capacity, and supervisory and risk-assessment systems to protect the financial sector from illicit flows and preserve access to the global financial system.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.

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