FinCEN withdraws proposed crypto mixing rule over ‘legitimate activity’ concerns
Summary
FinCEN withdrew two proposed crypto rules: a 2020 proposal requiring recordkeeping, verification and reporting for certain transactions involving unhosted wallets, and a 2023 proposal covering crypto mixing services. The agency said the mixer rule could burden financial institutions and chill legitimate activity, and cited the administration’s deregulatory agenda. Industry advocacy groups welcomed the decision. The withdrawal comes amid broader changes to US crypto oversight, including the CFTC’s announcement that it plans to propose rules for crypto companies under its existing authority.
