TREASURY WITHDRAWS CRYPTO MIXING RULE

Summary from the TLDR Crypto newsletter

FinCEN is withdrawing its 2023 proposal that would have designated international crypto mixing a "primary money laundering concern" under Section 311, along with a 2020 proposal requiring banks and money services businesses to verify identities and keep records on self-hosted wallet transactions above $3,000. The agency said commenters' concerns about the mixing rule's broad definition chilling legitimate privacy use informed the decision, and because neither proposal was finalized, existing obligations do not change. FinCEN said it will keep monitoring mixers for illicit use and cited a July 2025 President's Working Group report acknowledging lawful users may use mixers for financial privacy.