FinCEN withdraws proposed crypto mixing rule over ‘legitimate activity’ concerns
The bureau under the US Treasury said it was withdrawing two proposed rules on unhosted wallets and crypto mixers ”as part of the Trump Administration’s deregulatory agenda.”
FinCEN, the bureau under the US Treasury, has withdrawn two proposed rules concerning unhosted wallets and crypto mixers, as part of the Trump Administration's deregulatory agenda. The Financial Crimes Enforcement Network (FinCEN) withdrew the proposals, which included a rule on "convertible virtual currency mixing," after receiving comments from various stakeholders.
The agency has announced that the withdrawal is in line with the administration's efforts to ensure digital asset regulations are fit-for-purpose. FinCEN cited concerns that the mixer rule could have a "chilling effect on legitimate activity and place a large reporting burden on covered financial institutions." This decision comes in the wake of a series of regulatory moves by other agencies responsible for overseeing crypto assets, as part of the Trump administration's crypto agenda.
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