Treasury Secretary in the US will have unilateral and unchecked power to prohibit crypto transactions under a new bill, according to crypto advocacy group Coin Center. Janet Yellen, the Treasury Secretary, will have the power to prohibit these transactions without following any due process, limitation or rulemaking.
America COMPETES Act 2022
Coin Center’s executive director Jerry Brito warned about this bill’s damaging consequences for the crypto industry. The group is focused on public policies affecting crypto transactions. The bill introduced on Tuesday in the House can affect crypto transactions. According to Brito, this bill is likely to pass in one form or another. It has a special rule proposed by Jim Himes, the Connecticut Congressman. Brito explained this provision would prove disastrous not only for cryptocurrency but also for privacy and rulemaking.
This Provision Allows Unchecked Power to Treasury Secretary
The special measures proposed in this bill will give the Secretary unprecedented power to prohibit financial institutions and crypto exchanges from conducting cryptocurrency transactions. Brito added that currently, the Secretary is required to seek opinions from the public before implementing any prohibition. Any surveillance order given by the Secretary has a limitation of 120 days.
According to Brito, the new measures will give the Secretary the power to prohibit “transfer of funds”. There will be no need for the Secretary to seek comments from the stakeholders and issue notices to the public before issuing these directives. The 120-day requirement will be removed. Brito warned if this bill becomes a law, this strong provision will prove a disaster for cryptocurrency. It will affect privacy because the Secretary is not required to follow the due process of rulemaking.
