U.S. Congressman Sean Casten recently introduced a groundbreaking piece of legislation known as the Blockchain Integrity Act in the U.S. House of Representatives. This act aims to temporarily halt the use of cryptocurrency mixers for a period of two years while the government conducts a thorough study on their adoption and regulation. Casten was joined by fellow representatives Bill Foster, Brad Sherman, and Emanuel Cleaver as co-sponsors of the bill.
The primary objective of the Blockchain Integrity Act is to allow various regulatory bodies, including the Treasury Department, the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Department of Justice (DOJ), to thoroughly examine and understand the inner workings of cryptocurrency mixers. By doing so, they can issue comprehensive guidelines on how to regulate these tools effectively, particularly in light of their misuse by malicious actors.
Casten highlighted the illicit use of cryptocurrency mixers by certain entities, such as the Democratic People’s Republic of Korea (DPRK), which has reportedly used them to fund around half of its nuclear program. This alarming revelation emphasizes the urgent need for regulation and oversight in this area.
Moreover, Brad Sherman expressed his support for a complete ban on cryptocurrency mixers in the United States. He believes that implementing this regulation is a crucial first step towards safeguarding national security and the integrity of the financial system. By gaining a better understanding of the risks associated with mixers, regulators will be better equipped to address these concerns effectively.
It is worth noting that the Financial Crimes Enforcement Network (FinCEN) proposed special reporting procedures for financial institutions dealing with transactions involving mixers last year. This indicates a growing recognition of the need to tackle the potential misuse of these tools.
The introduction of the Blockchain Integrity Act marks a significant milestone in the U.S. government’s efforts to regulate cryptocurrency mixers. By imposing a temporary moratorium and conducting a comprehensive study, policymakers aim to strike a balance between innovation and security in the evolving landscape of digital currencies.
