U.S. Treasury Department says crypto mixers also have legitimate use cases

The U.S. Treasury Department, in a report on implementing the Genius Act, signaled a shift by acknowledging that blockchain privacy tools, or crypto mixers, have legitimate uses beyond illicit finance. These lawful purposes include shielding personal finances, business transactions, and charitable donations from public traceability. The department noted that privacy tools can coexist with compliance if properly designed with safeguards like record-keeping. This acknowledgment comes after years of opposition, including the 2022 blacklisting of Tornado Cash, which was later removed following legal challenges. While the report maintains concerns about illicit finance and stresses the need for stronger AML controls, it clarifies that privacy technology itself is not inherently illegal. Furthermore, the report encourages Congress to clarify AML obligations for DeFi actors and explore digital identity tools.

(Source：CoinDesk)