Monday, May 27, 2024

A crypto policy advocacy group has warned that a new US bill contains a “disastrous” provision.

A nonprofit crypto policy advocacy organization Coin Center’s executive director Jerry Brito urged US residents to call elected officials of their area regarding a new bill that House leaders have proposed. He wants people to make these leaders aware of privacy concerns related to this bill.

America COMPETES Act

This act has been released recently by the House leaders. In a Twitter thread on Wednesday, Jerry claims the bill has a provision that will cause problems to crypto users in terms of due process and privacy. The bill section pertaining to conditions or prohibitions on fund transfers as proposed by Rep. Jim Himes will give the US Treasury Secretary unilateral and unchecked power. The secretary can block exchanges and financial institutions engaged in crypto transactions.

Wide-Ranging Powers to the Treasury Secretary

The Treasury Secretary under this framework can use Bank Secrecy Act and force financial institutions to provide information about transactions that may be related to cases of money laundering. These institutions will be prohibited from providing their services to account holders who are suspected of dealing in illicit funds. According to Jerry, current checks placed on the authority of the Treasury Secretary will not apply.

Presently there are some limitations placed on the power of the Treasury Secretary. The law stipulates that before declaring a prohibition, the public should be engaged in the rulemaking. The secretary has the power to order a surveillance measure, but the duration of the order should not exceed 120 days, and it should include a mandatory public rulemaking. This process, even with its limitations, allows the public an opportunity to provide inputs and prevent the creation of rules that can go against them.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
RELATED ARTICLES

Most Popular