WASHINGTON—Andrea Gacki, director of the Financial Crimes Enforcement Network, told lawmakers that the long-debated “mixer rule” is entering its final stage, CryptoDNES reported.
Using powers granted under the PATRIOT Act, the proposal would extend anti-money laundering (AML) controls to privacy-focused tools regulators say threaten financial transparency.
The draft rule is expected to sweep broadly. In addition to targeting traditional crypto mixers, it could label practices such as splitting transfers, rotating wallets, swapping tokens, or delaying transactions as potential red flags. Critics warn such definitions risk criminalizing ordinary activity, likening the approach to “smurfing” laws that ban breaking large deposits into smaller ones to evade detection, CryptoDNES explained.
In parallel, Congress is advancing the Special Measures to Fight Modern Threats Act, legislation that would give Treasury expanded authority to block transactions routed through foreign exchanges, miners, or validators. Opponents argue the combined measures could force U.S. banks and trading platforms to retreat from global crypto markets, calling the effort “authoritarian” and overly punitive, CryptoDNES said.
According to CryptoDNES, supporters insist stronger oversight is necessary to combat money laundering and terrorist financing, citing the use of privacy-enhancing tools by criminal networks. But industry advocates counter that blanket restrictions would harm legitimate users—especially in repressive regimes where such technologies provide critical financial protection.
Treasury has not set a public timeline, but insiders suggest the final rule could be unveiled within weeks. If enacted, it would represent one of Washington’s most significant expansions of cryptocurrency oversight, reshaping how Americans can legally transact both at home and abroad, CryptoDNES added.