US Treasury abandons strict crypto wallet and mixer rules

The U.S. Department of the Treasury has withdrawn two proposed regulations targeting cryptocurrency wallets and mixers. The first proposal, introduced in 2020 by the Financial Crimes Enforcement Network (FinCEN), aimed to monitor transfers exceeding $10,000 between self-hosted wallets. The second, from 2023, sought to impose additional reporting requirements on crypto mixers, excluding Bitcoin (BTC) transactions.

FinCEN justified the reversal by stating that the regulations were too broad and did not align with the Treasury's targeted goals for digital asset oversight. The decision reflects a shift toward more focused and proportionate regulatory measures in the cryptocurrency space.

The withdrawal of these rules signals a potential easing of stringent surveillance proposals that had raised concerns among privacy advocates and industry participants. The move may also impact the broader regulatory landscape for cryptocurrencies in the U.S.