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  <div class="wp-block-image"> <figure class="alignright size-large is-resized"><img width="1024" height="1024" alt="Frank Corva" style="width:297px;height:auto;" title="On Bitcoin Privacy: More Deputy Attorney General, Less New York Attorney General 1"   src="https://cdn-ilddnad.nitrocdn.com/XgjmJNBNBbZQEuHAZVzgTqmzytAUTSfp/assets/images/optimized/rev-af63617/bitcoinmagazine.com/wp-content/uploads/2025/03/Frank_Corva-2-1024x1024.jpg" class="wp-image-41466 nitro-lazy" decoding="async" nitro-lazy-empty="" id="NzEwOjEzODM=-1"/><figcaption class="wp-element-caption">Follow Frank on <a href="https://x.com/frankcorva" target="_blank">X</a>.</figcaption></figure></div> <p class="nitro-lazy">Interesting news out of Washington this week! On Monday, Deputy Attorney General (DAG) Blanche released a <a href="https://www.defieducationfund.org/_files/ugd/84ba66_4278778963f14119be0ef1c7976bc3b2.pdf?utm_source=substack&amp;utm_medium=email" target="_blank" rel="noopener">memo</a> titled “Ending Regulation By Prosecution.” In it, he made a pretty significant statement: the U.S. Department of Justice is going to ease up on its approach to Bitcoin and crypto mixers.</p> <p>To give you the exact wording straight from the memo, DAG Blanche said:</p> <p>“…the Justice Department will stop participating in regulation by prosecution in this space. Specifically, the Department will no longer target virtual currency exchanges, mixing and tumbling services, and offline wallets for the acts of their end users or unwitting violations of regulations…”</p> <p>Now, here’s where things get interesting. Just a day later, New York Attorney General (NYAG) James, along with others, penned a <a href="https://ag.ny.gov/sites/default/files/letters/letter-to-congress-on-digital-asset-regulation-letter-2025.pdf" target="_blank" rel="noopener">letter</a> urging congressional leaders to create federal crypto regulations.  A major part of their argument?  Preventing crypto mixers from being used for illegal activities.</p> <p>Here’s what NYAG James and the other authors argued about crypto mixers:</p> <p>“To be effective, legislation must require cryptocurrency platforms to fully comply with anti-money laundering laws, know your customer (“KYC”) regulations, and cybersecurity protocols. This is crucial to stop cryptocurrency from funding terrorism, hostile regimes, and general crime. Cryptocurrency that can't be fully traced, especially if it goes through money laundering mixers, simply must not be allowed to be turned into U.S. dollars, whether directly or indirectly.”</p> <p>So, you see the split? DAG Blanche seems to be giving Bitcoin and crypto mixer users the benefit of the doubt. On the other hand, NYAG James pretty much suggests everyone using mixers are criminals, even going so far as to call the technology “money laundering mixers.”</p> <p>Honestly, hearing this kind of language from a state attorney general—or really, any lawyer—is concerning. It feels like a presumption of guilt before anything else.</p> <p>And this isn't new for NYAG James. She's been using this kind of rhetoric around Bitcoin and crypto since she took office back in 2018. It feels unfair for a couple of key reasons: 1) she never acknowledges that human rights and pro-democracy activists rely on mixers to protect their privacy and the privacy of their supporters, and 2) let's not forget, U.S. citizens actually *have* a right to financial privacy.</p> <p>As Bitcoin privacy gets more and more attention in politics, it's really important that we all help push the kind of sensible approach DAG Blanche is taking. We also need to challenge the problematic and unfair rhetoric coming from people like NYAG James.</p> <p>Seriously, it's up to *us* to make our voices heard on this.  We need to let our elected officials know we care about this, especially with important cases like the Samourai Wallet and Tornado Cash situations developing (we'll dive into those a bit more in the discussion below).</p> <figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"/> <p>The fight for our right to keep our online transactions private is really happening.  Please, don’t sit on the sidelines for this one.</p> <p><em>This article is a Take. Opinions expressed are entirely the author’s and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.</em></p>
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Source: bitcoinmagazine.com