US Treasury Opens Door to Regulated Crypto Privacy Tools While Maintaining AML Stance
The U.S. Treasury has signaled a potential path for lawful use of cryptocurrency mixers in its latest congressional report. While maintaining strict warnings about illicit uses by North Korea and other bad actors, the report acknowledges legitimate financial privacy needs for personal wealth, business payments, and charitable donations.
Treasury data shows $1.6 billion flowed through mixing services to bridges since May 2020, with $900 million reaching one bridge later implicated in DPRK laundering cases. This dual-track approach reflects growing regulatory sophistication toward blockchain analytics and privacy-preserving technologies.
The shift comes as major exchanges like Binance and Coinbase face increasing pressure to balance compliance with user demand for transactional privacy. Market observers note the report could influence development of compliant privacy solutions for assets like BTC, ETH, and privacy coins.
