FinCEN scraps crypto mixing rule over regulatory concerns
The US Treasury’s Financial Crimes Enforcement Network (FinCEN) has withdrawn two proposed rules targeting crypto companies. The move includes scrapping a December 2020 proposal on recordkeeping, verification, and reporting for crypto transactions and unhosted wallets, as well as an October 2023 rule affecting crypto mixing services. FinCEN cited concerns that the mixer rule could stifle legitimate activity and impose heavy reporting burdens on financial institutions.
The agency explained that the decision aligns with the Trump administration’s deregulatory agenda and efforts to ensure digital asset regulations are fit-for-purpose. This action follows other recent moves by crypto oversight agencies, including a statement from Commodity Futures Trading Commission Chair Michael Selig about proposing rules under existing authorities.
Industry advocacy groups welcomed FinCEN’s reversal. The Crypto Council for Innovation called the move “positive for the digital asset ecosystem” in a post on X. The withdrawal marks another step in the evolving regulatory landscape for cryptocurrencies.