DeFi

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 Experts and commentators on social media platform X have raised significant concerns about a potential law that grants the U.S. president extensive powers to block access to digital assets.&nbsp;&nbsp;
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This proposed regulation is part of a <a href="https://www.congress.gov/bill/118th-congress/senate-bill/4443" rel="noopener noreferrer nofollow">new bill,</a> “Intelligence Authorization Act for Fiscal Year 2025,” that is expected to be passed soon by the U.S.Congress. It empowers the President to block transactions between U.S. citizens and foreign entities linked to terrorist organizations. This includes imposing strict conditions on foreign financial institutions operating in the U.S. if they are found facilitating such transactions.
Scott Johnsson, a prominent figure in the digital assets community,<a style="color: #0000ff;" href="https://twitter.com/SGJohnsson/status/1798573154920476755?t=nsH9FPf6PsCaEI_rZ45Y7A&amp;s=19" rel="noopener noreferrer nofollow"> voiced his criticism</a> of the law’s broad coverage in a post on June 6, stating, 
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 “It’s hard to see how this isn’t intended to be a user-level ban power by the President on any protocol or smart contract deemed by the Treasury Secretary to be controlled, operated, or made available by a foreign sanctions violator. The scope and implications are vast, pushing users towards KYC-compliant and permissioned chains.”
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The backlash and criticisms of the new bill began on June 5, when an X user known as<a style="color: #0000ff;" href="https://twitter.com/blockchaintpsht/status/1798453680586244395?t=qDzFGlDMplAfN3KCcCP_kw&amp;s=19" rel="noopener noreferrer nofollow"> @Blockchaintpsht pointed out</a> that U.S. Senator Mark Warner had strategically added elements to the legislation, providing the President with sweeping new powers over digital assets. The law broadly defines “digital assets” to include any digital value recorded on cryptographically secure distributed ledgers, encompassing communication protocols, smart contracts, and other software that facilitate trades.
These controversial elements added by Warner were reportedly derived from the<a href="https://www.romney.senate.gov/romney-warner-rounds-reed-introduce-bipartisan-bill-to-enforce-sanctions-on-terrorist-organizations-like-hamas/" rel="noopener noreferrer nofollow"> Terrorism Financing Prevention Act, introduced in December 2023.</a> This particular act allows the U.S. Treasury Department to address emerging threats involving digital assets.
Notably, Johnsson<a href="https://twitter.com/SGJohnsson/status/1798573154920476755?t=w5diqELTZhWWABzljy09iA&amp;s=19" rel="noopener noreferrer nofollow"> warned</a> that this could be an attempt to control digital assets under the pretext of fighting terrorism.
As the debate continues, many in the digital assets community fear that these new powers could stifle innovation and push users toward more regulated and controlled blockchain networks.&nbsp;
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The post <a href="https://defi-planet.com/2024/06/experts-warn-of-new-u-s-law-that-grants-president-sweeping-powers-over-digital-assets/" rel="noopener noreferrer nofollow">Experts Warn of New U.S. Law That Grants President Sweeping Powers Over Digital Assets</a> appeared first on <a href="https://defi-planet.com" rel="noopener noreferrer nofollow">DeFi Planet</a>.

Experts Warn of New U.S. Law That Grants President Sweeping Powers Over Digital Assets

DeFi Planet

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