U.S. Treasury Withdraws Proposed Surveillance Rules Targeting Crypto Wallets and Mixers
The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) has dropped two proposed surveillance rules that would have expanded the reporting requirements for unhosted wallets and crypto mixers. The agency said this was part of the Trump administration’s efforts to ensure crypto regulat
The U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) has officially withdrawn two proposed surveillance rules that would have significantly expanded reporting requirements for unhosted crypto wallets and cryptocurrency mixers. The agency confirmed the move, stating it aligned with the Trump administration's broader review of existing and proposed crypto regulations to ensure they remain fit for purpose.
The two rules in question had been put forward under the previous administration and drew considerable criticism from the crypto industry. The unhosted wallet rule would have required financial institutions to collect and report identifying information on customers conducting transactions with self-custodied wallets. The mixer rule similarly sought to classify crypto mixing services as a category of particular concern, subjecting them to heightened reporting obligations under the Bank Secrecy Act.
The withdrawal is expected to be welcomed by crypto advocacy groups and industry participants who had argued both proposals represented regulatory overreach and posed risks to financial privacy. The decision signals a shift in the current administration's approach toward digital assets, suggesting a preference for industry-friendly frameworks over expansive surveillance mechanisms. Market participants may view this as part of a broader regulatory recalibration benefiting the sector.
Observers will be watching whether FinCEN issues revised guidance on unhosted wallets and mixers in the future, or whether the agency steps back from this area of oversight entirely under the current administration's policy direction.
Source: CoinGape
