US Treasury Shifts Stance on Crypto Mixers, Proposes 'Hold Law' for Illicit Assets

The US Treasury Department has made significant changes in its approach to crypto regulation with a recent report submitted to Congress.

The report highlights the legitimate uses of crypto mixers for financial privacy, which may include protecting sensitive information on personal wealth, business payments, or charitable donations. This marks a shift from previous stances, including the sanctioning of Tornado Cash in 2022 and designating international mixers as money-laundering hubs in 2023.

However, the report also acknowledges that criminal actors continue to exploit mixers for illicit purposes. It notes that North Korean-affiliated cybercriminals have stolen at least $2.8 billion in digital assets between January 2024 and September 2025, often using mixers to break tracing links.