I 

118TH CONGRESS 

2D SESSION H. R. 8266 

To place a 2-year moratorium on financial institutions handling, using, or 

transacting with funds routed through digital asset mixers and to require 

the Secretary of the Treasury to carry out a study of digital asset 

mixers, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 7, 2024 

Mr. CASTEN (for himself, Mr. FOSTER, Mr. SHERMAN, and Mr. CLEAVER) introduced the following bill; which was referred to the Committee on Financial Services 

A BILL 

To place a 2-year moratorium on financial institutions handling, using, or transacting with funds routed through 

digital asset mixers and to require the Secretary of the 

Treasury to carry out a study of digital asset mixers, 

and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Blockchain Integrity 

5 Act’’. 

6 SEC. 2. MORATORIUM ON DIGITAL ASSET MIXERS. 

7 (a) MORATORIUM.— 


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1 (1) IN GENERAL.—During the 2-year period be2 ginning 6 months after the date of enactment of this 

3 Act, it shall be unlawful for a financial institution to 

4 handle, use, or transact with— 

5 (A) any incoming funds that have been 

6 routed through a digital asset mixer operating 

7 on a cryptographically secured distributed ledg8 er; and 

9 (B) any outgoing funds routed directly to 

10 a digital asset mixer operating on a cryp11 tographically secured distributed ledger. 

12 (2) ENFORCEMENT.— 

13 (A) IN GENERAL.—The Secretary of the 

14 Treasury shall enforce this section. 

15 (B) CIVIL PENALTY.—The Secretary of the 

16 Treasury may impose a civil penalty on any fi17 nancial institution that violates subsection (a) 

18 in an amount not greater than $100,000 for 

19 each violation. 

20 (b) STUDY BY TREASURY.—The Secretary of the 

21 Treasury, in consultation with the Securities and Ex22 change Commission, the Commodity Futures Trading 

23 Commission, the Attorney General, and such other depart24 ments and agencies as determined by the Secretary of the 

25 Treasury, shall carry out a study of digital asset mixers, 


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1 privacy coins, and other anonymity-enhancing tech2 nologies. 

3 (c) REPORT.—Not later than 18 months after the 

4 date of the enactment of this Act, the Secretary of the 

5 Treasury shall provide to the Committee on Financial 

6 Services of the House of Representatives and the Com7 mittee on Banking, Housing, and Urban Affairs of the 

8 Senate a report, to include a classified annex, if necessary, 

9 that contains all findings made in carrying out the study 

10 under subsection (b) that analyzes the following issues: 

11 (1) Current typologies of digital asset mixers, 

12 privacy coins, and other anonymity-enhancing tech13 nologies, and historical transaction volume. 

14 (2) Estimates of the percentage of transactions 

15 in paragraph (1) that are believed to be connected, 

16 directly or indirectly, to illicit finance, including dig17 ital asset transaction volumes associated with sanc18 tioned entities and entities subject to special meas19 ures pursuant to section 5318A of title 31, United 

20 States Code, and a description of any limitations ap21 plicable to the data used in such estimates. 

22 (3) Information about legitimate uses of digital 

23 asset mixers, including transaction volumes associ24 ated with payments to journalists in authoritarian 


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1 regimes, donations to the government of Ukraine, 

2 and for enhanced privacy and security purposes. 

3 (4) The capacity of the Financial Crimes En4 forcement Network, the Office of Foreign Assets 

5 Control, and Federal and State law enforcement 

6 agencies to track, prevent the transfer of, freeze, 

7 and confiscate funds that have been processed 

8 through digital asset mixers, privacy coins, and 

9 other anonymity-enhancing technologies, including— 

10 (A) general estimates regarding the num11 ber of instances on an annual basis such agen12 cies were able to prevent the transfer of funds 

13 through such methods; and 

14 (B) the extent to which such agencies uti15 lized blockchain analytics firms when preventing 

16 the transfer of funds through such methods. 

17 (5) New and emerging obfuscation tools and 

18 methods to reduce transparency on a cryptographi19 cally secured distributed ledger. 

20 (6) Financial incentives for relayers or any 

21 other party in the process of validating transactions 

22 on a cryptographically secured distributed ledger, in23 cluding an assessment of the contractual relationship 

24 between relayers and digital asset mixers. 


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1 (7) Regulatory approaches employed by other 

2 jurisdictions to address illicit uses of digital asset 

3 mixers, privacy coins, and other anonymity-enhanc4 ing technologies. 

5 (8) Recommendations for legislation or regula6 tion to address the illicit uses of digital assets, in7 cluding with respect to— 

8 (A) covered nations, as defined in section 

9 4872(d)(2) of title 10, United States Code, and 

10 affiliated actors; 

11 (B) Foreign Terrorist Organizations, as 

12 designated by the Secretary of State, and affili13 ated actors; 

14 (C) sanctions evasion by Russian entities, 

15 individuals, and affiliated actors; 

16 (D) human trafficking and the sexual ex17 ploitation of children; 

18 (E) international trafficking of fentanyl, 

19 fentanyl precursors, or other related opioids; 

20 (F) organized crime groups in East and 

21 Southeast Asia; and 

22 (G) darknet marketplaces. 

23 (d) DEFINITIONS.—In this section: 

24 (1) ANONYMITY-ENHANCING TECHNOLOGIES.— 

25 The term ‘‘anonymity-enhancing technologies’’ 


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1 means software, products, or services that facilitate 

2 digital asset transactions with enhanced anonymity, 

3 as defined by the Financial Crimes Enforcement 

4 Network. 

5 (2) DIGITAL ASSET MIXER.—The term ‘‘digital 

6 asset mixer’’ means a website, software, or other 

7 service designed to conceal or obfuscate the origin, 

8 destination, and counterparties of digital asset 

9 transactions. 

10 (3) FINANCIAL INSTITUTION.—The term ‘‘fi11 nancial institution’’ has the meaning given the term 

12 in section 5312(a) of title 31, United States Code. 

13 (4) PRIVACY COIN.—The term ‘‘privacy coin’’ 

14 means a digital asset designed to— 

15 (A) hinder tracing through distributed 

16 ledgers; or 

17 (B) conceal or obfuscate the origin, des18 tination, and counterparties of digital asset 

19 transactions. 

20 (5) RELAYERS.—The term ‘‘relayers’’ means a 

21 person, entity, software program, or person or entity 

22 operating such software program, that receives, com23 municates, or otherwise conveys blocks of transVerDate Sep 11 2014 02:10 Jun 09, 2024 Jkt 049200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H8266.IH H8266

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1 actions to a validator, miner, or other entity that 

2 serves a similar function. 

Æ 


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