Proposal of Special Measure Regarding Convertible Virtual Currency Mixing, as a Class of Transactions of Primary Money Laundering Concern; Withdrawal

A three-year-old proposal aimed at cryptocurrency mixers is off the table. The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) withdrew it as of October 6, 2026.

Background: in October 2023 (88 FR 72701), FinCEN proposed finding that international “convertible virtual currency (CVC) mixing” — services that obscure the source, destination or amount of crypto transactions, for example by pooling coins from many users or splitting them into many small transfers — was a class of transactions of primary money laundering concern under section 311 of the USA PATRIOT Act.

Had it been finalized, covered financial institutions would have had to file reports when they knew or suspected a transaction involved CVC mixing abroad, listing details such as the amount, the mixer used, wallet addresses, transaction hashes, dates and IP addresses, plus a narrative. They would also have had to keep customer identity records tied to those transactions.

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Why it was withdrawn, in FinCEN’s words: commenters warned that the broad definition of mixing could chill legitimate activity and put a large reporting burden on institutions. The notice also points to a July 2025 report from the President’s Working Group on Digital Asset Markets, which said lawful users may use mixers for financial privacy on public blockchains and recommended Treasury consider next steps on the proposal.

FinCEN adds that illicit actors still use mixers, that it will keep watching mixer activity for signs of money laundering or terrorist financing, and that it may act in the future. The notice is signed by Deputy Director Jimmy L. Kirby. Questions go to FinCEN’s Regulatory Support Section at www.fincen.gov/contact (RIN 1506-AB47).

Federal Register filing: https://www.federalregister.gov/documents/2026/10/06/2026-20429/proposal-of-special-measure-regarding-convertible-virtual-currency-mixing-as-a-class-of-transactions

This is a Notice Nearby publisher-desk Federal brief — a short in-house summary of a public federal filing. It is not official agency minutes, not a newspaper story, and not Legal Publication. It does not satisfy a statutory notice requirement.