A new bill, the Blockchain Integrity Act, has been introduced in the US House of Representatives, proposing a two-year ban on crypto mixers. The legislation, sponsored by five Democratic congress members, aims to prevent the use of mixers for illegal financing and other illicit activities.

The bill would temporarily prohibit financial institutions, including crypto exchanges and money service businesses, from accepting funds passed through a mixer or allowing withdrawals directly to a mixer's address. Violations would be subject to a fine of up to $100,000. During the two-year period, the Treasury Department would prepare a report on mixer transactions, including estimated illegal financing, legitimate uses, and regulatory approaches in other jurisdictions.

The proposal has garnered support from Representatives Bill Foster, Brad Sherman, and Emanuel Cleaver, although it has yet to be sent to committee. Sherman, a long-time crypto skeptic, emphasized the need for regulation, stating that mixers are used by terrorist groups, sanction dodgers, and cybercriminals to hide their illegal activities. The US has previously taken action against crypto mixers, including banning Tornado Cash and charging its founders with money laundering and sanctions violations. The proposal comes as the EU has also implemented new Anti-Money Laundering laws, putting pressure on crypto mixers like Monero.