In March 2026, the US Treasury submitted a report to Congress on technologies combating illegal financing using digital assets. This document was prepared under the GENIUS Act, signed by Donald Trump in July 2025. The 32-page report marks the first time a federal agency acknowledges the legality of using crypto mixers to protect financial privacy.

Together with the team from the Bitcoin mixer Mixer.Money, we analyze the key points of the report, its significance for the industry, and the practical implications for users.

From Sanctions to Recognition

In 2022, the Office of Foreign Assets Control (OFAC) imposed sanctions against Tornado Cash. In October 2023, FinCEN proposed classifying cryptocurrency mixers as "money laundering centers" that threaten national security.

Since then, the policy has shifted. In March 2025, the Treasury lifted sanctions against Tornado Cash following a court ruling. In August, the co-founder of the service, Roman Storm, was found guilty of operating without a license, but the jury did not reach a verdict on the money laundering charge. Later, a Justice Department representative stated that the agency would cease pursuing DeFi developers under the unlicensed money transmission statute.

The March report solidifies this shift at the official level.

"Three years ago, the Treasury labeled mixers as money laundering centers. Now, the same Treasury states that law-abiding users need these tools to protect their personal savings and business payments. This is a fundamental shift that confirms what we've been saying for a long time: privacy is not synonymous with crime," noted representatives from Mixer.Money.

What the US Treasury Says About Mixers

The report provides a detailed analysis of the role of mixers in the digital asset ecosystem. The agency distinguishes between custodial and non-custodial services.

Custodial mixers accept users' funds for storage and must register with FinCEN as money services businesses (MSBs). They retain data about clients and transactions, which can be shared with regulators and law enforcement.

For non-custodial services, the Treasury did not recommend new restrictions. The agency continues to seek a balance between the risks of illegal financing and citizens' right to privacy.

The document explicitly states that users turn to mixers to protect information about personal savings, commercial payments, and charitable donations. As the use of digital assets for everyday transactions grows, the need for privacy in consumer operations will increase.

Stablecoins and Bridges

The report analyzes the interaction between mixers, stablecoins, and cross-chain bridges for the first time at the federal level.

Since May 2020, users have withdrawn $37.4 billion in USDT and USDC through 50 bridges. During the same period, approximately $1.6 billion flowed from mixers to bridges.

The Treasury describes a typical money laundering scheme: criminals send stolen coins (most often Bitcoin) to a mixer, and then exchange them for stablecoins. The tokens are then transferred to a new wallet, severing the link to the original transaction.

"This tactic allows evasion of AML/CFT controls and sanctions, and enables the party converting stablecoins to fiat to deny involvement,"

However, directly depositing "stablecoins" into mixers remains rare—malefactors prefer to use other obfuscation methods for fiat-pegged tokens.

"The report confirms what is obvious to experts: mixers are just one element in the chain. Criminals use bridges, swaps, OTC brokers, and dozens of other tools. Banning mixers will not stop money laundering but will deprive ordinary users of basic privacy. It is important that the Treasury understands this and is not pursuing a total ban,"

What This Means

The Treasury's report fits into a broader trend. Venture capital firm a16z and Binance Research have identified privacy as a key development area for the crypto industry in 2026. In January, Senators Cynthia Lummis and Ron Wyden introduced a bill exempting developers and providers of non-custodial services from the requirement to obtain money transmission licenses.

The Treasury's recognition creates a political foundation for the further development of privacy tools within the legal framework. The agency does not propose banning non-custodial services—instead, it effectively affirms users' rights to tools that sever the link between their identity and transactions on the public blockchain.

"This report settles the debate over the legality of using mixers. The Treasury explicitly states: people have legitimate reasons to protect financial privacy. Regulators will, of course, continue to combat illegal use—and that is right. But using the tool itself is not a crime. Our task is to provide ordinary users access to privacy without requiring them to understand cryptography and on-chain analytics," summarize representatives from Mixer.Money.

Previously, ForkLog published a detailed analysis of the privacy trend in 2026.