The Digital Chamber (TDC) has issued a detailed response to the letter sent by Representatives Casten, Lynch, Foster, Sherman, Scott, Cleaver, and Beatty to Secretary Yellen and Acting Under Secretary Smith regarding the potential risks posed by cryptocurrency mixers.
In our response, we emphasize the need to contextualize the role of mixers within the broader financial ecosystem. While we acknowledge the challenges posed by bad actors, we also highlight the legitimate privacy benefits these technologies offer to activists, refugees, and others seeking financial security in oppressive environments.
Our response underscores how privacy-preserving tools like mixers can coexist with robust compliance measures, such as those outlined in FinCEN’s guidance, to balance security and innovation. By leveraging existing regulatory frameworks, advancing education, and fostering partnerships between industry and law enforcement, we can ensure privacy-preserving technologies are used responsibly.
We remain committed to supporting policies that enhance security without stifling innovation. Together, policymakers and industry leaders can create a balanced framework that prevents illicit activity while fostering a secure and inclusive digital asset ecosystem.