HomeBlockchainUS Blockchain Integrity Act Proposes 2-Year Ban on Crypto Mixers

US Blockchain Integrity Act Proposes 2-Year Ban on Crypto Mixers


United States House of Representatives Introduces Bill to Ban Cryptocurrency Mixers for Two Years

The United States House of Representatives has introduced a new bill called the Blockchain Integrity Act, aimed at banning cryptocurrency mixers for a period of two years. Sponsored by five Democratic congresspeople, led by Sean Casten, the bill defines a crypto mixer as a pool that allows users to generate a new address and withdraw their funds without revealing the link between the depositor and withdrawal addresses.

If passed, the bill would temporarily prohibit financial institutions, including cryptocurrency exchanges, from accepting funds that have gone through a mixer or allowing funds to be withdrawn directly to the address of a mixer. Violations would be subject to a civil penalty of up to $100,000.

During the two-year ban, the Treasury Department would compile a report detailing the percentage of transactions involving mixers that involve illicit finance, legitimate uses of mixers, law enforcement’s capacity to track or prevent transactions, and regulatory approaches to mixers taken in other jurisdictions.

Co-sponsors of the bill include Representatives Bill Foster, Brad Sherman, and Emanuel Cleaver. Sherman, a known crypto opponent, expressed concerns about the use of mixers by terrorist groups, sanction evaders, tax evaders, and cyber criminals to obscure their illicit activities.

The United States has previously taken action against crypto mixers, with the Treasury’s Office of Foreign Asset Control placing addresses associated with mixer Tornado Cash on its list of Specially Designated Nationals in August 2022. The founders of that mixer have since been charged with money laundering, sanctions violations, and related crimes in the U.S. and the Netherlands.

Privacy cryptocurrency Monero (XMR) has also faced pressure following the introduction of new Anti-Money Laundering laws by the European Union. The bill has yet to go to committee for further consideration.


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