US Treasury Submits GENIUS Act Crypto Report to Congress

The US Treasury Department has sent a new crypto report to Congress under the GENIUS Act. The document is about 32 pages long. It focuses on ways to track and stop illegal activity that uses digital assets. Officials prepared the report as part of a rule included in the law passed in July 2025. 

Lawmakers asked the Treasury to study new tools that can help fight crypto related crime. While still supporting innovation. Now Congress will review the findings. They will decide whether new rules or actions are needed.

Report Looks at Tools to Track Crypto Crime

The report explains how governments and companies can monitor suspicious activity on blockchain networks. Because blockchain transactions are public. Experts can analyze them to find unusual patterns. The US Treasury highlighted several technologies that help with this work. These include blockchain analytics software, artificial intelligence and data-sharing tools. 

These systems can track how digital assets move between wallets and exchanges. If investigators see suspicious behavior. They may follow the transaction trail to identify possible criminal activity. Officials say these tools are becoming more important as the crypto industry grows.

Mixers Recognized for Legal Privacy Uses

One interesting point in the report involves crypto mixers. These tools mix transactions together so outside observers cannot easily trace where funds came from. In the past, U.S. authorities mostly linked mixers to illegal activity such as money laundering. But the new report acknowledges that mixers can also have legal uses. 

For example, people may use them to protect personal privacy, hide sensitive business payments or make anonymous donations. Simultaneously, the Treasury warned that criminals may still use these tools. With this, regulators want better ways to detect suspicious transactions.

US Treasury Suggests New “Hold Law”

The report also suggests a possible new rule called a “hold law.” This idea would allow crypto exchanges to temporarily freeze suspicious funds during investigations. The goal is to stop stolen or illegal funds from moving quickly across the system. Normally, freezing assets requires legal approval from a court. 

Yet, the proposed rule could give exchanges limited power to act faster. When they detect suspicious activity. Supporters say this could help prevent fraud and protect users. But some critics worry that it may give companies too much control over user funds.

Lawmakers Now Review the Report

Congress will now study the report and its recommendations. Lawmakers may use the findings when writing future crypto regulations. The GENIUS Act itself already focuses heavily on stablecoins. Including rules for issuers and oversight by regulators. 

Through the report shows that U.S. officials are trying to balance two goals. They want to reduce crypto crime. But they also want to support new financial technology. For now, the report marks another step in the government’s effort to understand and regulate the growing digital asset industry.

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