US Treasury withdraws proposed crypto surveillance rules

US Treasury: The U.S. Department of the Treasury is the federal executive department responsible for managing national finances, economic policy, and financial regulation, including anti-money laundering efforts under the Bank Secrecy Act through its FinCEN bureau. In this development, it withdrew proposed rules that would have expanded surveillance and reporting requirements on unhosted cryptocurrency wallets and CVC mixing services. The action signals a continued focus on targeted measures for illicit finance while addressing privacy and feasibility concerns in digital assets. Privacy: The Treasury has acknowledged that crypto mixers can serve valid financial privacy purposes for lawful users on public blockchains. Regulation: Recent Treasury reports to Congress recommend legislative tools such as hold laws to help financial institutions temporarily freeze suspicious crypto assets.