The US Treasury’s Financial Crimes Enforcement Network (FinCEN) withdrew two proposed rules that would have expanded its oversight of crypto firms, including a plan to regulate mixing services. A notice released on Monday states that the agency will rescind a December 2020 proposal requiring recordkeeping, verification and reporting for crypto transactions and unhosted wallets, as well as a separate rule targeting mixing platforms. FinCEN said the mixer rule, first floated in October 2023, “could have a chilling effect on legitimate activity and place a large reporting burden on covered financial institutions.” The agency added that it had reviewed public comments and decided to withdraw the proposals as part of the Trump administration’s deregulation push and its broader effort to craft “fit‑for‑purpose” digital‑asset rules. FinCEN’s move follows recent actions by other agencies overseeing crypto, such as the Commodity Futures Trading Commission, which announced it would use existing statutory authority to propose rules for crypto firms without seeking new congressional approval. Advocacy groups praised the reversal; the Crypto Council for Innovation called it “positive for the digital asset ecosystem.” No new timeline or alternative regulatory framework was provided in the notice.