US Treasury says ‘legitimate’ crypto users have legitimate reasons to use mixers
The Treasury report was sent to the US Congress as part of guidance on the GENIUS stablecoin regulatory framework.
The United States Treasury Department acknowledged the legitimate use of micrometers that disrupt crypto-transactions to protect users' privacy in a report to Congress entitled “Innovative Technologies to Combat Illicit Finance Involving Digital Assets.”
“As consumers increase their use of digital assets for payments, individuals may want to use hybrids to maintain greater privacy in their consumer spending habits,” the report said. The Treasury report continued:
“Legitimate users of digital assets can use mixers to enable financial privacy when transacting through public blockchains. For example, individuals can use mixers to protect personal wealth, business payments or charitable donations from being exposed on public blockchains.”
However, the report also noted the dangers of the “dark web,” or unsecured, decentralized mixing. According to the Treasury, it is money laundering or money laundering by cybercriminals, including hackers with ties to North Korea.
The authors suggest that centralized service providers, which handle users' funds during the process, may provide identifying information that can be used to track users and the flow of transactions.
Privacy in crypto has become an important issue in 2025 as financial surveillance increases and US lawmakers attempt to impose know-your-customer (KYC) requirements on digital asset service providers and decentralized finance (DeFi) platforms.
Related: Dash Evolution Chain Integrates Zcash Orchard's Privacy Pool
DeFi leaders and experienced investors warn about privacy risks
DeFi leaders and advocates have sounded the alarm over ambiguous language in the Digital Asset Market Transparency Act of 2025, also known as the CLARITY Bill, that would require DeFi platforms to collect personal information from users.
Alexander Grieve, vice president of government affairs at crypto investment firm Paradigm, said the law did not provide enough protection for open source software developers in the US.
Former hedge fund manager Ray Dalio also warned that central bank digital currencies (CBDCs), on-chain fiat currencies managed by a central bank institution or government, are emerging and pose a major threat to digital privacy.
In an interview with independent journalist Tucker Carlson, Dalio said CBDCs are a “very effective form of control” for the government.
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