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Treasury Report Seeks ‘Hold Law’ for Crypto, Acknowledges Legitimate Uses of Mixers

The recommendations would only apply if Congress creates the requested authority.

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U.s. treasury signals shift on crypto mixers, acknowledges legitimate privacy uses
Plan to counter illicit finance
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Overview

  • In a 32-page GENIUS Act submission, Treasury outlines a calibrated approach that accepts privacy tools when compliant and prioritizes targeted action against laundering.
  • The department urges a digital-asset–specific hold law to give regulated platforms a temporary safe harbor to pause transfers tied to suspected crime during investigations.
  • Treasury attributes at least $2.8 billion in digital asset theft to DPRK-linked actors from January 2024 through September 2025, including a $1.5 billion Bybit intrusion.
  • Officials report stablecoins accounted for about 84% of illicit crypto volume in 2025 and detail roughly $1.6 billion in mixer-sourced flows across bridges since 2020, with over $900 million concentrated in one bridge under DPRK scrutiny.
  • The report recommends a compliance tech stack using AI, digital identity, blockchain analytics, and APIs, and asks Congress to clarify which DeFi participants bear AML obligations as legal questions over freezes and SAR secrecy persist.