The FinCEN wallet rule was one of the most prominent items caught in this freeze. The proposal would have required:
The "Proposed Crypto Wallet Rule" originally refers to a controversial 2020 regulatory proposal by the U.S. Treasury's Financial Crimes Enforcement Network (FinCEN). It sought to impose strict reporting and record-keeping requirements on transactions involving "unhosted" (self-custodied) cryptocurrency wallets.
The rule sparked a "firestorm" within the crypto community, leading to over . Proposed Crypto Wallet Rule Among Those Frozen ...
Critics noted it was technically impossible for some decentralized finance (DeFi) protocols or smart contracts to collect the required name and address data.
Exchanges to verify the identity of owners for transactions over $3,000 to unhosted wallets. The FinCEN wallet rule was one of the
By 2026, the regulatory landscape shifted from total "freezes" to targeted implementation and legislative reform.
Advocates argued the rule was a "significant intrusion" into personal privacy and financial autonomy. It sought to impose strict reporting and record-keeping
Automatic filing of Currency Transaction Reports (CTRs) for transactions exceeding $10,000 . Arguments and Industry Pushback