According to the information received, the proposed crypto law in the USA could have disastrous consequences for the cryptocurrency industry, including ban. Analyst Jerry Brito expressed his concerns about the proposed provision in the America’s Competition Act. The decision aims to allow the Treasury to covertly ban any transaction deemed to pose a money laundering risk. Brito said the rule could give the Treasury uncontrolled discretion to ban crypto transactions. Detail cryptocoin.com‘in.
Risky law for cryptocurrencies
A new provision in the America’s Competition Act may authorize the U.S. Treasury to immediately prohibit any financial transaction associated with money laundering risks. The newly submitted America Competition Act of 2022 bill also includes provisions that could pose a major regulatory hurdle for crypto. Jerry Brito, Executive Director of Washington-based crypto think tank Coin Center, sounded the alarm over the “special precautions” provision in the Act in a tweetstorm Wednesday.
The provision, pointed out by Brito, aims to authorize the Treasury to prohibit any transaction related to the “money laundering risk”, regardless of the controls and processes provided for in current law. The proposed rule would replace the Bank Secrecy Act, under which the Treasury has the power to identify and counteract “money laundering concerns” in the United States. If the draft becomes law, the provision could seriously hamper the crypto industry. Today, the law requires the Treasury to make a public announcement before using these powers. The new provision removes such controls, meaning that the Treasury can freely exercise special powers without notifying the public. According to Brito, this provision could give the Treasury an “uncontrolled and unilateral discretion” to prevent financial institutions such as cryptocurrency exchanges from using cryptocurrency networks. This could potentially prevent millions of people in the US from accessing crypto without using alternatives like DeFi or VPN technology.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!
Disclaimer: The articles and articles on Kriptokoin.com do not constitute investment advice. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, asset or service in this article.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.