{"id":95049,"date":"2026-03-09T12:50:14","date_gmt":"2026-03-09T09:50:14","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=95049"},"modified":"2026-03-09T12:55:14","modified_gmt":"2026-03-09T09:55:14","slug":"us-authorities-acknowledge-privacy-rights-of-crypto-mixer-users","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/us-authorities-acknowledge-privacy-rights-of-crypto-mixer-users\/","title":{"rendered":"US Authorities Acknowledge Privacy Rights of Crypto Mixer Users"},"content":{"rendered":"<p>The US Treasury has submitted a <a href=\"https:\/\/home.treasury.gov\/system\/files\/246\/GENIUS-Act-Illicit-Finance-Innovation-Congressional-Report-March-2026.pdf\">report<\/a> to Congress, acknowledging the legality of using crypto mixers to protect financial privacy.<\/p>\n<p>In 2022 and 2023, the department labeled mixers as money laundering hubs and imposed sanctions against <a href=\"https:\/\/forklog.com\/en\/news\/what-is-the-tornado-cash-mixer-and-why-was-it-sanctioned\">Tornado Cash<\/a>. Now, the ministry has noted that law-abiding users need mixers to conceal data about personal savings, business payments, or donations.<\/p>\n<p>Criminal use of such services remains a concern. According to the Treasury, from January 2024 to September 2025, hackers linked to North Korea stole $2.8 billion in cryptocurrency. Of this, $1.5 billion was from the <a href=\"https:\/\/forklog.com\/en\/news\/bybit-exchange-suffers-1-46-billion-loss-in-hack\">Bybit exchange hack<\/a>. Perpetrators regularly use mixers to obfuscate their tracks.<\/p>\n<h2 class=\"wp-block-heading\">Connection with Stablecoins and Bridges<\/h2>\n<p>The department has, for the first time, analyzed the interaction of mixers, <a href=\"https:\/\/forklog.com\/en\/news\/what-are-stablecoins\">stablecoins<\/a>, and <a href=\"https:\/\/forklog.com\/en\/news\/what-are-cross-chain-bridges\">cross-chain bridges<\/a>.<\/p>\n<p>Since May 2020, users have withdrawn over $37.4 billion in the two largest stablecoins through 50 different bridges. During the same period, about $1.6 billion flowed from mixers to these platforms, with over $900 million of this amount passing through a single service popular among North Korean hackers.<\/p>\n<p>Perpetrators rarely deposit fiat-pegged tokens directly into mixers. They typically send other assets there. Upon exit, criminals exchange coins for stablecoins to break the transaction chain before converting to fiat.<\/p>\n<h2 class=\"wp-block-heading\">Regulation and Types of Mixers<\/h2>\n<p>The document distinguishes between custodial and non-custodial services. The former must register with <span data-descr=\"US Financial Crimes Enforcement Network\" class=\"old_tooltip\">FinCEN<\/span>. They can provide authorities with data on clients and their transactions.<\/p>\n<p>For the second category of platforms, the Treasury did not recommend new restrictions. The regulator continues to seek a balance between the risks of illegal financing and citizens&#8217; right to privacy.<\/p>\n<h2 class=\"wp-block-heading\">Treasury Initiatives<\/h2>\n<p>The department has asked Congress to pass several new laws. The Treasury proposes:<\/p>\n<ul class=\"wp-block-list\">\n<li><strong>introducing a right to freeze. <\/strong>Financial institutions could temporarily block suspicious crypto assets during investigations;<\/li>\n<li><strong>clarifying rules for DeFi. <\/strong>Congress should determine which participants in the decentralized finance market fall under <span data-descr=\"anti-money laundering\" class=\"old_tooltip\">AML<\/span> requirements;<\/li>\n<li><strong>the &#8220;sixth special measure&#8221; to the US Anti-Terrorism Act. <\/strong>The Treasury seeks authority to block cryptocurrency transfers outside correspondent banking relationships.<\/li>\n<\/ul>\n<h2 class=\"wp-block-heading\">Easing of Government Stance<\/h2>\n<p>The report comes amid a shift in state policy on crypto privacy. In March 2025, the Treasury <a href=\"https:\/\/forklog.com\/en\/news\/tornado-cash-removed-from-ofac-sanctions-list\">lifted<\/a> sanctions on Tornado Cash following a court decision. In August, the service&#8217;s co-founder Roman Storm was <a href=\"https:\/\/forklog.com\/en\/news\/jury-returns-partial-guilty-verdict-for-tornado-cash-co-founder-crypto-industry-dismayed\">found guilty<\/a> of operating without a license, but the jury could not reach a verdict on money laundering charges.<\/p>\n<p>Later, Matthew Galeotti from the US Department of Justice <a href=\"https:\/\/forklog.com\/en\/news\/us-revises-stance-on-defi-following-tornado-cash-case\">stated<\/a> that the department would cease prosecuting DeFi application developers under the statute for running an unlicensed money transmission business.<\/p>\n<p>In January 2026, Senators Cynthia Lummis and Ron Wyden <a href=\"https:\/\/forklog.com\/en\/news\/us-lawmakers-advocate-for-defi-developers\">introduced<\/a> a bill exempting programmers and non-custodial service providers from needing money transmitter licenses.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The US Treasury has submitted a report to Congress, acknowledging the legality of using crypto mixers to protect financial privacy.<\/p>\n","protected":false},"author":1,"featured_media":95050,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"US Treasury acknowledges legality of crypto mixers for financial privacy.","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1292,1256,36,26],"class_list":["post-95049","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-aml-kyc","tag-privacy-and-personal-data","tag-regulation","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"235","promo_type":"1","layout_type":"1","short_excerpt":"US Treasury acknowledges legality of crypto mixers for financial privacy.","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/95049","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=95049"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/95049\/revisions"}],"predecessor-version":[{"id":95051,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/95049\/revisions\/95051"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/95050"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=95049"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=95049"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=95049"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}