FinCEN Withdraws CVC Mixing Rulemaking, Reverses 2022 Finding

FinCEN has withdrawn its 2022 finding and proposed rulemaking that would have designated international convertible virtual currency mixing as a class of transactions of primary money laundering concern under Section 311 of the USA PATRIOT Act. The withdrawal reverses a prior regulatory stance and removes the threat of enhanced recordkeeping and reporting requirements for CVC mixers. This signals a shift in US anti-money laundering policy toward crypto privacy tools, though the rationale and future regulatory direction remain unclear.