The U.S. Treasury Department told Congress that bitcoin or crypto mixers can serve legitimate financial privacy purposes, signaling a shift in the government’s approach to blockchain privacy tools. 

The 32-page report, submitted under the GENIUS Act, also proposes new legislative tools to combat illicit finance, including a “hold law” that would give financial institutions temporary safe harbor to freeze suspicious digital assets.

The report acknowledges that lawful users may employ mixers to protect sensitive information on personal wealth, business payments, or charitable donations.

This represents a recalibration from Treasury’s earlier stance, which included sanctioning…

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