Imposes a 2-year moratorium on financial institutions from handling, using, or transacting with funds routed through digital asset mixers.
Defines digital asset mixers as services designed to conceal the origin, destination, and counterparties of digital asset transactions.
Mandates the Secretary of the Treasury to enforce the moratorium, with the ability to impose a civil penalty of up to $100,000 for each violation.
Requires the Secretary of the Treasury to conduct a study on digital asset mixers, privacy coins, and other anonymity-enhancing technologies in consultation with various federal agencies and departments.
Specifies that the study should analyze current typologies, transaction volumes, legitimate uses, and the capacity of law enforcement to track and confiscate illicitly used funds.
Calls for a report to be provided to relevant congressional committees within 18 months of the Act’s enactment, detailing the study’s findings and including recommendations for legislation or regulation to address illicit uses of digital assets.
Defines terms such as “anonymity-enhancing technologies,” “privacy coin,” “financial institution,” and “relayers” for clarity within the context of the legislation.