Galaxy Digital, a cryptocurrency investment firm, warned that a crypto market structure bill released by the U.S. Senate Banking Committee would grant the Treasury broad oversight and enforcement powers, Cointelegraph reported on Jan. 14.
Galaxy said the bill would be the biggest expansion of financial surveillance powers since the Patriot Act enacted after the Sept. 11 attacks.
Galaxy said the bill contains provisions to strengthen controls on illicit finance beyond the CLARITY Act passed by the House. It includes a clause giving the Treasury authority to restrict transactions by allowing it to designate foreign jurisdictions, financial institutions and certain cryptocurrency transactions as money-laundering concerns. The tools are similar to surveillance measures introduced under the Patriot Act and are likely to apply to overseas exchanges and transaction routes as well, Cointelegraph reported.
The bill also includes a temporary hold framework that can freeze cryptocurrency transactions for up to 30 days. The Treasury or relevant agencies can ask stablecoin issuers and digital asset service providers to halt transactions without a court order, and extensions are possible.
Chi-gyu Hwang
delight@d-today.co.kr