FinCEN Scraps Crypto Mixer Rule Over Industry Concerns
The US Treasury’s Financial Crimes Enforcement Network (FinCEN) has withdrawn two proposed rules targeting crypto companies, including one related to “convertible virtual currency mixing.” According to a notice published on Monday, FinCEN is scrapping a December 2020 proposal that would have imposed strict recordkeeping, verification, and reporting requirements for crypto transactions involving unhosted wallets. The agency is also withdrawing a separate rule affecting crypto mixing services, which was proposed in October 2023.
FinCEN cited concerns that the mixer rule could have a chilling effect on legitimate activity and would place a heavy reporting burden on financial institutions. The agency stated that the decision aligns with the Trump administration’s deregulatory agenda and efforts to ensure crypto regulations are fit-for-purpose.
The move is part of broader regulatory actions by US agencies overseeing crypto assets. Earlier the same day, Commodity Futures Trading Commission Chair Michael Selig announced plans to propose two rules on crypto company operations using existing statutory authorities.
Crypto industry advocacy groups welcomed FinCEN’s decision. The Crypto Council for Innovation called the reversal a positive step for the digital asset ecosystem in a Monday post on X.