U.S. Treasury Department's Shift in Attitude Could Bring New Opportunities to the Crypto Privacy Sector

CycleProphet · 2026-03-09T11:55:35+00:00

The U.S. Department of the Treasury has for the first time acknowledged that crypto mixers can be used for legitimate financial privacy. Regulatory attitudes are softening, privacy tools are becoming mainstream, but risks remain high. North Korean hackers are involved in money laundering, and the EU plans to ban privacy coin exchanges, increasing compliance pressure.

CycleProphet

2026-03-09 11:55:35

Abstract generation in progress

Deep Tide TechFlow News, March 9th, reports that the U.S. Department of the Treasury, in its latest Congressional report, has for the first time acknowledged that privacy tools such as token mixers can serve legitimate financial privacy purposes. The language has softened significantly compared to previous statements, seen as a sign that the Trump administration’s regulatory stance on the crypto industry continues to loosen.

Nansen senior research analyst Jake Kennis pointed out that political tensions, tightening regulations, and the maturity of zero-knowledge (ZK) technology are collectively driving the privacy sector from fringe speculation into mainstream institutional focus. Currently, capital is rapidly flowing into compliant privacy projects like Railgun, Nocturne, Zama, Aleo, and Nillion, covering scenarios such as tokenization, payments, trade finance, and custody.

However, risks should not be overlooked: the Treasury report also disclosed that North Korean hackers laundered billions of dollars through mixers between 2024 and 2025; the EU plans to ban the listing of privacy coins like Zcash and Monero on exchanges by 2027. Meanwhile, developers of privacy tools such as Tornado Cash and Samourai Wallet are facing legal prosecution in the US and Europe, increasing industry compliance pressures.

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