US Treasury report acknowledges legitimate uses for crypto mixers

The US Treasury Department published a report acknowledging that crypto mixing services serve legitimate purposes, such as protecting personal wealth, shielding business payment details, and enabling anonymous charitable donations. This represents a notable pivot from previous enforcement actions, like sanctioning Tornado Cash. The report highlights the transparency problem inherent in public blockchains, where every transaction is visible, necessitating tools for privacy. However, it also acknowledges the darker reality, noting that mixers are primary laundering channels for cybercriminals, including those linked to North Korea. Instead of advocating for blanket bans, the Treasury recommends "hold laws" to temporarily freeze suspect assets during investigations. The framework suggests a two-tiered system where compliant mixers report to FinCEN. This shift provides institutional players with political cover to engage with privacy infrastructure, though investors must watch for actual legislation and exchange listing decisions, as purely non-compliant tools remain risky.

(Source：Crypto Briefing)