Treasury withdraws crypto mixing rule, citing concerns over ‘chilling effect on legitimate activity’

Written and edited by the WorldPing NewsdeskPublished Updated Original reporting: The Block
Treasury withdraws crypto mixing rule, citing concerns over ‘chilling effect on legitimate activity’WorldPing
Image via The Block.

What happened

FinCEN is withdrawing a proposal that would've designated crypto mixing a "primary money laundering concern" under the PATRIOT Act.

Key facts

  • Reported by The Block and published Mon, 05 Oct 2026 17:22:37 UTC.

Why it matters

Digital-asset markets react to catalysts within minutes, and liquidity, ETF flows and regulatory signals are usually what decide whether a move sticks.

What to watch next

  • Whether spot volume and open interest confirm the move
  • Liquidation clusters around the current price
  • ETF flow data and any regulatory follow-up

Coverage timeline

When each newsroom published on this story, oldest first — all times UTC.

  1. US Treasury Moves to Scrap Proposed Crypto Wallet, Mixer Surveillance Rules

  2. Treasury withdraws crypto mixing rule, citing concerns over ‘chilling effect on legitimate activity’

  3. CFTC joins SEC in proposing crypto framework after failed CLARITY vote

  4. CFTC Opens Crypto Rulebook as Selig Tells Industry ‘Build Here’

  5. S&P Global brings risk assessments to growing crypto lending vault sector

  6. Japanese Bitcoin Treasury Metaplanet Sold BTC Last Quarter To Demonstrate Liquidity

  7. Crypto Sleuth ZachXBT Fronted $350K to Pose as a Client of Lazarus' Chinese Launderers

Sources

The original report was published by The Block. WorldPing does not claim that reporting — this page summarises and contextualises it.

Read the full report at The Block

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