The US Treasury’s Financial Crimes Enforcement Network (FinCEN) has withdrawn a 2023 proposal that would have treated international crypto mixing as a primary money laundering concern, citing warnings that the measure could discourage lawful privacy use and load banks and other covered firms with heavy reporting duties.

In a notice filed for Federal Register publication on October 6, 2026, FinCEN pulled both its formal finding and the attached proposed special measure.

The action closes a rulemaking first published on October 23, 2023, under section 311 of the USA PATRIOT Act.

That statute lets Treasury designate certain foreign jurisdictions, institutions, account types, or classes of transactions as presenting a primary…