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) in-
troduced the following bill; which was referred to the Committee on Fi-
nancial Services 
A BILL 
To place a 2-year moratorium on financial institutions han-
dling, 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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Blockchain Integrity 
Act’’. 
SEC. 2. MORATORIUM ON DIGITAL ASSET MIXERS. 
(a) MORATORIUM.— 
VerDate Sep 11 2014 
02:10 Jun 09, 2024
Jkt 049200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H8266.IH
H8266
kjohnson on DSK7ZCZBW3PROD with $$_JOB
(1) IN GENERAL.—During the 2-year period be-
ginning 6 months after the date of enactment of this 
Act, it shall be unlawful for a financial institution to 
handle, use, or transact with— 
(A) any incoming funds that have been 
routed through a digital asset mixer operating 
on a cryptographically secured distributed ledg-
er; and 
(B) any outgoing funds routed directly to 
a digital asset mixer operating on a cryp-
tographically secured distributed ledger. 
(2) ENFORCEMENT.— 
(A) IN GENERAL.—The Secretary of the 
Treasury shall enforce this section. 
(B) CIVIL PENALTY.—The Secretary of the 
Treasury may impose a civil penalty on any fi-
nancial institution that violates subsection (a) 
in an amount not greater than $100,000 for 
each violation. 
(b) STUDY BY TREASURY.—The Secretary of the 
Treasury, in consultation with the Securities and Ex-
change Commission, the Commodity Futures Trading 
Commission, the Attorney General, and such other depart-
ments and agencies as determined by the Secretary of the 
Treasury, shall carry out a study of digital asset mixers, 
VerDate Sep 11 2014 
02:10 Jun 09, 2024
Jkt 049200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H8266.IH
H8266
kjohnson on DSK7ZCZBW3PROD with $$_JOB
privacy coins, and other anonymity-enhancing tech-
nologies. 
(c) REPORT.—Not later than 18 months after the 
date of the enactment of this Act, the Secretary of the 
Treasury shall provide to the Committee on Financial 
Services of the House of Representatives and the Com-
mittee on Banking, Housing, and Urban Affairs of the 
Senate a report, to include a classified annex, if necessary, 
that contains all findings made in carrying out the study 
under subsection (b) that analyzes the following issues: 
(1) Current typologies of digital asset mixers, 
privacy coins, and other anonymity-enhancing tech-
nologies, and historical transaction volume. 
(2) Estimates of the percentage of transactions 
in paragraph (1) that are believed to be connected, 
directly or indirectly, to illicit finance, including dig-
ital asset transaction volumes associated with sanc-
tioned entities and entities subject to special meas-
ures pursuant to section 5318A of title 31, United 
States Code, and a description of any limitations ap-
plicable to the data used in such estimates. 
(3) Information about legitimate uses of digital 
asset mixers, including transaction volumes associ-
ated with payments to journalists in authoritarian 
VerDate Sep 11 2014 
02:10 Jun 09, 2024
Jkt 049200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H8266.IH
H8266
kjohnson on DSK7ZCZBW3PROD with $$_JOB
regimes, donations to the government of Ukraine, 
and for enhanced privacy and security purposes. 
(4) The capacity of the Financial Crimes En-
forcement Network, the Office of Foreign Assets 
Control, and Federal and State law enforcement 
agencies to track, prevent the transfer of, freeze, 
and confiscate funds that have been processed 
through digital asset mixers, privacy coins, and 
other anonymity-enhancing technologies, including— 
(A) general estimates regarding the num-
ber of instances on an annual basis such agen-
cies were able to prevent the transfer of funds 
through such methods; and 
(B) the extent to which such agencies uti-
lized blockchain analytics firms when preventing 
the transfer of funds through such methods. 
(5) New and emerging obfuscation tools and 
methods to reduce transparency on a cryptographi-
cally secured distributed ledger. 
(6) Financial incentives for relayers or any 
other party in the process of validating transactions 
on a cryptographically secured distributed ledger, in-
cluding an assessment of the contractual relationship 
between relayers and digital asset mixers. 
VerDate Sep 11 2014 
02:10 Jun 09, 2024
Jkt 049200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H8266.IH
H8266
kjohnson on DSK7ZCZBW3PROD with $$_JOB
(7) Regulatory approaches employed by other 
jurisdictions to address illicit uses of digital asset 
mixers, privacy coins, and other anonymity-enhanc-
ing technologies. 
(8) Recommendations for legislation or regula-
tion to address the illicit uses of digital assets, in-
cluding with respect to— 
(A) covered nations, as defined in section 
4872(d)(2) of title 10, United States Code, and 
affiliated actors; 
(B) Foreign Terrorist Organizations, as 
designated by the Secretary of State, and affili-
ated actors; 
(C) sanctions evasion by Russian entities, 
individuals, and affiliated actors; 
(D) human trafficking and the sexual ex-
ploitation of children; 
(E) international trafficking of fentanyl, 
fentanyl precursors, or other related opioids; 
(F) organized crime groups in East and 
Southeast Asia; and 
(G) darknet marketplaces. 
(d) DEFINITIONS.—In this section: 
(1) ANONYMITY-ENHANCING TECHNOLOGIES.— 
The 
term 
‘‘anonymity-enhancing 
technologies’’ 
VerDate Sep 11 2014 
02:10 Jun 09, 2024
Jkt 049200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H8266.IH
H8266
kjohnson on DSK7ZCZBW3PROD with $$_JOB
means software, products, or services that facilitate 
digital asset transactions with enhanced anonymity, 
as defined by the Financial Crimes Enforcement 
Network. 
(2) DIGITAL ASSET MIXER.—The term ‘‘digital 
asset mixer’’ means a website, software, or other 
service designed to conceal or obfuscate the origin, 
destination, and counterparties of digital asset 
transactions. 
(3) FINANCIAL
INSTITUTION.—The term ‘‘fi-
nancial institution’’ has the meaning given the term 
in section 5312(a) of title 31, United States Code. 
(4) PRIVACY COIN.—The term ‘‘privacy coin’’ 
means a digital asset designed to— 
(A) hinder tracing through distributed 
ledgers; or 
(B) conceal or obfuscate the origin, des-
tination, and counterparties of digital asset 
transactions. 
(5) RELAYERS.—The term ‘‘relayers’’ means a 
person, entity, software program, or person or entity 
operating such software program, that receives, com-
municates, or otherwise conveys blocks of trans-
VerDate Sep 11 2014 
02:10 Jun 09, 2024
Jkt 049200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H8266.IH
H8266
kjohnson on DSK7ZCZBW3PROD with $$_JOB
actions to a validator, miner, or other entity that 
serves a similar function. 
Æ 
VerDate Sep 11 2014 
02:10 Jun 09, 2024
Jkt 049200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6301
E:\BILLS\H8266.IH
H8266
kjohnson on DSK7ZCZBW3PROD with $$_JOB