Senators Cynthia Lummis (R-Wyo.) and Ron Wyden (D-Ore.) have reached out to U.S. Attorney General Merrick Garland and the Department of Justice (DOJ) concerning a continuing crackdown on crypto mixers suspected of functioning as illicit money transmitters.
Senator Wyden emphasized that imposing liability on non-custodial crypto asset software developers for alleged criminal activity could potentially infringe upon the First Amendment and disrupt years of established legal precedent.
The problem arises from the perspective of the Financial Crimes Enforcement Network (FinCEN), which considers any crypto mixers or services facilitating asset transactions as meeting the criteria of a money transmitter, thereby necessitating registration with authorities.
Both Senators contended that FinCEN’s recent stance, as reaffirmed in a filing last month, directly contradicts the true intent of the law. As per a bipartisan letter dated May 9 and revealed on May 13, a service must exert control over the assets to meet the criteria of a money transmitter under this provision.
“Wallet software is no more to blame for illicit finance than a highway is responsible for a bank robber’s getaway car.” – Senator Cynthia Lummis
Campaign Against Crypto Mixers and Digital Assets
Senators Lummis and Wyden have raised concerns about the Department of Justice’s approach via FinCEN in the aftermath of cases involving crypto mixers such as Samourai Wallet and Tornado Cash. Five founders, attributed to the development of these platforms, either face arrest or await rulings in their ongoing court proceedings.
Supporters within the industry assert that developers shouldn’t bear responsibility for the unlawful utilization of their software. They highlight that attributing culpability to an individual for coding could hinder innovation and technological progress.
Certain on-chain participants have expressed the view that users have been abandoned because of a dearth of clear policies regarding digital assets in the United States. While several bills in Congress aim to tackle these issues, experts are skeptical that definitive legislation will be passed during an election year.
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