Treasury Kills Crypto 'Unhosted Wallet' and Mixer Surveillance Rules
Summary
FinCEN withdrew two proposed crypto surveillance rules: a 2020 proposal requiring financial firms to record and report certain transactions involving self-custody wallets, and a 2023 proposal targeting international crypto mixing. The agency said concerns that the mixer rule’s broad definition could deter legitimate activity contributed to its withdrawal, while noting it will continue monitoring mixers. Both decisions cite the White House’s 2025 digital asset report, which supports lawful private transactions on public blockchains. Coin Center welcomed the withdrawals but warned that FinCEN retains authority to propose similar rules.
