After years of opposition to crypto mixers, the onchain services that obfuscate digital asset transactions, the U.S. Treasury Department now says they may have legitimate privacy uses as well as their much-trumpeted criminal applications.

In a report related to the implementation of the Genius Act, the Treasury acknowledged that mixing services can serve lawful purposes on public blockchains. These include shielding personal finances, business transactions and charitable donations from being publicly traceable. The department noted that privacy tools can coexist with compliance when properly designed, for example, through record-keeping or other safeguards.

“As consumers increase their use of digital assets for payments, individuals may…