This new legislation notably allows American authorities to intervene in transactions between American citizens and foreign entities linked to terrorist organizations.
More power to the White House. A new law passed by the US Congress on June 6 now grants the US president more powers to regulate the use of cryptocurrencies. This new legislation allows it in particular to intervene in transactions between American citizens and foreign entities linked to the financing of terrorist organizations.
The law requires “the Secretary of the Treasury to identify and report any foreign bank or facilitator of cryptocurrency transactions that engages in significant transactions with terrorist groups.”
Once the problematic transaction is identified, the president gains the power to ban or block the accounts of these entities. This law also provides for sanctions in the event of violation thereof.
The aim is to keep tabs on any foreign person who “controls, operates or makes available a digital asset protocol”, “installs or assists in the purchase, sale, exchange, custody or any other transaction involving an exchange” or “transfer of value using digital assets”.
Government control
Some pro-crypto figures fear that this measure is an attempt to exercise control over cryptocurrencies by making it appear that this is to fight terrorism. This is the case of lawyer Scott Johnsson for example.
“It is difficult to understand how this is not a user-level ban power of the President on any protocol/smart contract deemed by the Secretary of the Treasury to be controlled, exploited, or compromised. provision by someone who has violated foreign sanctions. The scope and implications of this measure are staggering, as it aims to lock users into KYC/authorized channels.”
Source: https://www.bfmtv.com/crypto/regulation/la-maison-blanche-a-desormais-le-pouvoir-de-bloquer-certains-transactions-en-cryptomonnaies_AV-202406070561.html
