US Senators and FBI Show Nuanced Stance on Privacy Protocols

US senators and intelligence agencies may not be as opposed to privacy-focused protocols as some in the crypto industry believe. This perspective was shared by Railgun anonymizer researcher Alan Scott Jr., reports Cointelegraph.

During a presentation at ETH Global in Sydney, the expert explained that his conclusion is based on conversations with politicians and the FBI in Washington. According to him, many of them “want to do the right thing and protect people.”

“They are concerned about potential issues that could hinder them from catching wrongdoers,” Scott emphasized.

He noted that discussions with US politicians and regulators were generally positive, and he got the impression that many were trying to understand new developments.

“Whenever we talk about cryptocurrency or DeFi, they ask reasonable questions and try to understand what this technology is, how it works, and why people like us are so fond of it,” he said.

Scott believes that actions against Samourai Wallet and the prosecution of Tornado Cash developer Roman Storm are not “crusades against the concept of privacy in cryptocurrency in a broader sense.” However, he noted that if anonymity becomes illegal, it would be “extremely regrettable.”

Globally, regulators are tightening their rhetoric towards cryptocurrency mixers. In particular, FinCEN plans to designate them as “money laundering hubs” that threaten US national security.

In November 2023, California-based Bitcoin platform Swan Bitcoin warned users via email of indefinite bans for directly using crypto mixers.

In March 2024, a US jury found Russian Roman Sterlingov guilty of operating the Bitcoin Fog crypto mixer and laundering over $400 million. He faces up to 20 years in prison.