Treasury Withdraws Crypto Mixing and Self-Hosted Wallet Proposals, Citing Privacy and Reporting Concerns

Posted 10/6/26

The withdrawals reflect Treasury’s broader shift toward easing digital asset regulation, giving greater weight to financial privacy and compliance costs despite documented use of mixers in illicit finance. Alongside the department’s removal of Tornado Cash sanctions, the move signals a retreat from some preventive measures aimed at cryptocurrency abuse. FinCEN nevertheless says it will continue monitoring mixers and may act against illicit activity.

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