Key Takeaways:
- A new U.S. law grants the President extensive powers to restrict access to digital assets, raising concerns over potential sweeping restrictions.
- The law enables the President to ban users from specific protocols or smart contracts linked to foreign sanctions violators, favoring KYC-compliant and permissioned blockchain networks.
- Senator Mark Warner played a key role in shaping the legislation, part of the Terrorism Financing Prevention Act, aimed at managing digital asset threats.
A recent U.S. law grants the President significant powers to restrict access to digital assets, eliciting concerns due to its potential to impose sweeping restrictions.
Critic Scott Johnsson describes the law as giving the President the authority to ban users from specific protocols or smart contracts deemed connected to foreign sanctions violators by the Treasury Secretary, thereby pushing users towards KYC-compliant and permissioned blockchain networks.
It's hard to see how this isn't intended to be a user-level ban power by the President on any protocol/smart contract thats deemed by the Treasury Secretary to be "controlled, operated or [made] available" by a foreign sanctions violator. Breathtaking scope and implications to… https://t.co/i36gE79lIM
— Scott Johnsson (@SGJohnsson) June 6, 2024
This move is seen as a method to regulate digital assets under the guise of combating terrorism.
Senator Mark Warner is noted for his pivotal role in shaping this legislation, which is part of broader efforts encapsulated in the Terrorism Financing Prevention Act to manage threats related to digital assets.
🚨Important news
— Paweł Łaskarzewski (@PawelSynapse) December 9, 2023
🧐 Exploring the #Cryptocurrency-Terrorism Nexus: Senators Mitt Romney, Mark Warner, Mike Rounds, and Jack Reed introduced the Terrorism Financing Prevention Act, taking a critical stance on crypto's role in funding terrorism.
🌐 The proposed legislation seeks… pic.twitter.com/rKdlaslPMC
The law also includes provisions to block transactions involving U.S. persons and foreign entities linked to terrorism.
About The Author
Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
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