The Financial Crimes Enforcement Network announced on 5 October 2026 that it is withdrawing two proposed digital asset rulemakings. Both withdrawal documents were published in the Federal Register on 6 October 2026, as FR Documents 2026-20429 and 2026-20430. Each action closes its rulemaking at the proposal stage. Neither proposal was ever finalised, so no obligations attached and none are being repealed.
The first withdrawal, Proposal of Special Measure Regarding Convertible Virtual Currency Mixing, as a Class of Transactions of Primary Money Laundering Concern; Withdrawal, withdraws both the finding and the notice of proposed rulemaking published at 88 FR 72701 on 23 October 2023. The cited authority is section 311 of the USA PATRIOT Act, codified at 31 U.S.C. 5318A, and the part affected is 31 CFR Part 1010. The second withdrawal, Requirements for Certain Transactions Involving Convertible Virtual Currency or Digital Assets; Withdrawal, withdraws the proposed rule published at 85 FR 83840 on 23 December 2020 and touches 31 CFR Parts 1010, 1020 and 1022.
Money services businesses, exchanges and custodians that had been preparing for the 2020 proposal's recordkeeping, verification and reporting duties on transactions involving unhosted wallets no longer face that rule text. Mixing service operators, and the banks and exchanges handling their flows, are released from the prospect of a section 311 special measure aimed at convertible virtual currency mixing as a class. Bank Secrecy Act duties already in force, including suspicious activity reporting and the recordkeeping rules in 31 CFR Chapter X, are untouched by either withdrawal.
FinCEN stated that it had considered the comments submitted and that the withdrawals form part of the current administration's deregulatory agenda, supporting work to keep digital asset regulation fit for purpose. Each withdrawal takes effect on its Federal Register publication date of 6 October 2026. Closing a rulemaking at proposal stage leaves FinCEN free to propose again on a different record, and Treasury has continued to describe digital asset money laundering as a live risk.
Licentium advises exchanges, custodians, payment firms and their counterparties on Bank Secrecy Act exposure and digital asset financial crime rules in the United States and elsewhere. Work we undertake includes anti money laundering programme review against 31 CFR Chapter X, unhosted wallet and self custody transaction policy design, section 311 and sanctions exposure analysis, and comment letters on digital asset rulemakings.
Source: FinCEN, FinCEN Announces Withdrawals of Proposed Digital Asset Related Rules, 5 October 2026