US legislators have put forth a new proposal to temporarily halt financial institutions from participating in transactions involving funds that have passed through crypto mixers.

The bill, called the Blockchain Integrity Act, presented by Congressman Sean Casten and supported by Representatives Bill Foster, Brad Sherman, and Emmanuel Cleaver, suggests a two-year pause on such transactions.

During this period, the Treasury Department, SEC, CFTC, and DOJ would conduct a thorough examination of digital asset mixers, privacy coins, and anonymity-enhancing technologies to understand their illicit uses and legitimate applications. Congressman Casten argues that digital asset mixers could be exploited for money laundering and financing terrorist activities, while Congressman Foster and Sherman emphasize the role of mixers in facilitating financial crimes and concealed transactions.

The bill comes at a time of increased scrutiny on mixers by US authorities due to concerns about their contribution to illicit financial activities.