US Crypto Regulation Enters a New Era With CFTC Rulemaking

The United States appears to be entering a new phase in cryptocurrency regulation, marked by two important developments involving the Treasury Department and the Commodity Futures Trading Commission (CFTC).

On one side, the U.S. Treasury has withdrawn two controversial proposals targeting unhosted cryptocurrency wallets and crypto mixers. On the other, the CFTC is reportedly preparing its first formal set of crypto market rules, signaling a possible shift away from an enforcement-first approach toward a clearer regulatory framework.

The Treasury’s decision to withdraw the proposals could be welcomed by privacy advocates, crypto users and industry participants. Unhosted wallets are cryptocurrency wallets controlled directly by individuals rather than by exchanges or financial institutions.

Unlike custodial wallets, they allow users to hold and transfer digital assets without relying on an intermediary. Crypto mixers, meanwhile, are services designed to make transactions harder to trace by combining funds from different users.

Regulators have long viewed these technologies as potential tools for money laundering, sanctions evasion and other illicit activities. However, broad restrictions on them have raised concerns that legitimate users could lose financial privacy and that developers could face excessive regulatory pressure.