FinCEN Scraps Crypto Wallet and Mixer Rules in Trump Deregulation Push

On Monday, the Financial Crimes Enforcement Network (FinCEN) withdrew two proposed rules targeting cryptocurrency self-custody wallets and mixers, citing the Trump administration's deregulatory agenda. The wallet rule, pending since December 2020, would have required banks and money service businesses to verify customer identities and file reports for transactions over $10,000 involving unhosted wallets. The mixer rule, proposed in 2023, would have imposed special reporting requirements on transactions involving crypto mixing with a foreign link.

The withdrawal follows a July 2025 White House report from the President's Working Group on Digital Asset Markets and comes after FinCEN reviewed public comments on both proposals. Deputy Director Jimmy L. Kirby signed the wallet notice, stating the bureau will take no further action. The Crypto Council for Innovation (CCI), which had warned that the mixer rule's broad definition could capture legitimate activity, called the withdrawals 'positive for the digital asset ecosystem' and 'the rulemaking process working.'

The decision signals a shift in regulatory approach under the Trump administration, but privacy-focused crypto services remain under legal pressure. Samourai Wallet co-founders Keonne Rodriguez and William Lonergan Hill were recently sentenced to five and four years in prison, respectively, for money laundering related to their mixing service. The case highlights the ongoing tension between privacy advocacy and enforcement, even as FinCEN steps back from broad rulemaking.