On Monday, Deputy Attorney General (DAG) Blanche released a memorandum titled “Ending Regulation By Prosecution,” wherein he declared that the U.S. Department of Justice will halt its aggression towards bitcoin and cryptocurrency mixers.
Here’s the precise wording he utilized in the memorandum:
“…the Justice Department will cease involvement in regulation through prosecution in this domain. Specifically, the Department will no longer target virtual currency platforms, mixing and tumbling operations, and offline wallets for the conduct of their end users or inadvertent breaches of regulations…”
The next day, New York Attorney General (NYAG) James co-signed a message urging congressional leaders to establish federal cryptocurrency regulation to some extent to curb the misuse of crypto mixers for illegal activities.
Here’s what she and her colleagues mentioned regarding crypto mixers:
“Robust legislation must mandate cryptocurrency platforms to clearly adhere to anti-money laundering statutes, know your customer (“KYC”) directives, and cybersecurity measures to avert the utilization of cryptocurrency in financing terrorism, hostile governments, and crime. Cryptocurrency that cannot be completely traced, such as those processed through money laundering mixers, must be prohibited from converting, either directly or indirectly, to U.S. dollars.”
While DAG Blanche extended the presumption of innocence to users of Bitcoin and crypto mixers, NY AG James suggested that all users of such mixers are offenders, as she labels the technology “money laundering mixers.”
This type of language is profoundly alarming to hear from the state’s attorney general—let alone from any attorney—as it assumes guilt.
Since assuming the role of attorney general in 2018, NY AG James has consistently used this kind of rhetoric around Bitcoin and cryptocurrency, which is unjust because 1.) she has never recognized that human rights and pro-democracy advocates use mixers to safeguard both their privacy and that of their supporters and 2.) U.S. citizens possess a right to financial confidentiality.
Therefore, as Bitcoin privacy increasingly gains attention in the political arena, ensure you play your part to amplify the positive rhetoric that DAG Blanche is employing while resisting the harmful and unjust language coming from figures like NY AG James.
It is our responsibility to make our viewpoints known on this matter and to inform our elected representatives that this is important to us, particularly as the Samourai Wallet and Tornado Cash cases develop (more on both cases in the discussion below).
The struggle for our right to transfer value online securely is underway. Please don’t remain on the sidelines.
This article is a Take. The views expressed are solely those of the author and do not necessarily represent those of BTC Inc or Bitcoin Magazine.
