A group of five Democratic U.S. lawmakers has introduced a bill in the House of Representatives called the "Blockchain Integrity Act," which aims to impose a temporary ban on the use of cryptocurrency mixers. This proposed legislation is designed to prohibit these services for two years and includes a significant civil penalty of up to $100,000 for financial institutions found to be facilitating transactions involving mixers.

The rationale behind the temporary ban is to provide lawmakers with the necessary time to thoroughly investigate and report on the usage of mixers, including their implications and impacts. Crypto mixers, which obfuscate the origins of cryptocurrencies, making transactions less traceable, are often cited for their potential use in illegal activities such as money laundering and financing terrorism.

The introduction of the bill has sparked a strong reaction from the cryptocurrency community. Many proponents of digital currencies argue that the focus on crypto mixers is disproportionately critical compared to the broader financial system, where U.S. dollars and other fiat currencies are also used for illicit purposes. They contend that cryptocurrencies are being unfairly targeted as a diversion from other systemic financial issues.

This tension highlights the ongoing debate over the balance between regulatory oversight and the autonomy of the crypto sector. As the bill progresses through legislative scrutiny, it will likely continue to be a focal point for discussions on privacy, innovation, and regulation in the evolving landscape of digital currencies.