- Blockchain Integrity Act would see financial services banned from processing mixer-related transactions for two years.
- Defaulters would be subject to civil penalty of $100,000.
- Privacy coins could take a hit if new bill is approved.
On Wednesday, US Congressman Sean Casten introduced the Blockchain Integrity Act in the US House of Representatives to temporarily ban financial institutions that interact with crypto mixing protocols. Following the announcement, privacy cryptocurrencies were down 2.4%.
Also read: Democrats to introduce bill targeting crypto mixing services
Casten targets crypto mixers with new bill
The Blockchain Integrity Act, co-sponsored by Reps. Bill Forster, Brad Sherman and Emmanuel Cleaver, aims to curtail the use of crypto mixing protocols.
Casten initially stated his intentions to introduce the bill in a House subcommittee hearing on Tuesday, where he called mixing protocols "money laundering channels."
If enacted, the bill would make it unlawful for financial institutions to process any incoming funds that have passed through a crypto mixer or outgoing funds being directly withdrawn to a mixing protocol for two years.
Read also: US intensifies battle against crypto privacy protocols following crackdown on Samourai Wallet
As Casten states, financial institutions include cryptocurrency exchanges, virtual asset service providers (VASPs), and other registered money service businesses (MSBs). According to the bill, each violation would attract a civil penalty of $100,000.
While the two-year ban is in effect, the bill mandates that the Secretary of the Treasury and other related entities carry out a study and make a report on the estimated percentage of mixing-related transactions connected to illicit financing. The report would also cover information about the legitimate use of mixers and the capacity of enforcement agencies to track and control funds that have passed through mixing protocols.
Also read: Tornado Cash developer Roman Storm’s motion to dismiss accusations rebuffed by US DOJ
Some have said that a Democratic bill at this time may not be approved in a Republican-majority House.
Meanwhile, crypto community members have expressed concerns that such a bill would negatively impact the growth of privacy coins. As a result, cryptocurrencies under the privacy category may experience a dump if the bill is approved.
Other privacy/mixing protocols, such as Tornado Cash and Samourai Wallet, have also faced harsh enforcement actions in the US.
The privacy coins category is down 2.4% on Wednesday, May 8.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
VanEck sees Bitcoin reaching $61 trillion market cap, Marathon buys $100 million BTC
Bitcoin declined by 1% on Thursday following asset manager VanEck's forecast that the top digital asset will reach a $61 trillion market capitalization by 2050.
Ethereum Classic price sets for a rally following retest of key support
ETC edges higher by 2.3% and trades around $22.60 at the time of writing on Friday after testing a key support area the day before. On-chain data showing increased account growth suggests a bullish move ahead. Ethereum Classic price faced rejection by the daily resistance level of $25.13 earlier this week.
Celebrity meme coins lose their shine
Celebrity meme coins report by Jupiter Slorg on Thursday shows that these tokens have been in deep waters since early July after experiencing heavy growth in June. In a recent analysis, Jupiter Slorg revealed that celebrity meme coins are down by an average of 94% from their all-time highs.
Ripple gains 5%, Mark Cuban says Kamala Harris’ nomination could affect SEC lawsuit
Ripple (XRP) made a comeback above key psychological resistance early on Wednesday. Crypto traders are optimistic after the Ethereum Exchange Traded Fund (ETF) launch. Entrepreneur and investor Mark Cuban recently shared his comments on how Kamala Harris’ nomination to the Presidential elections could influence crypto regulation.
Bitcoin: Will BTC manage to recover from recent market turmoil?
Bitcoin recovers to $67,000 on Friday after finding support around $63,500 a day before. Still, BTC losses over 1.50% on the week as Mt. Gox persists in transferring Bitcoin to exchanges.