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Thursday, June 6, 2024
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The new law gives the President of the United States the power to block access to digital assets

A new law gives the President of the United States broad powers to block access to digital assets, drawing significant concern from commentators on X.

Joe Biden – Current US President

On June 6, Scott Johnsson, a prominent voice in the digital assets sector, announced criticize This law, because of its broad scope, clearly states:

“It is difficult to see why this is not a Presidential user-level ban on any protocol/smart contract that the Secretary of the Treasury deems “controlled, operated, or provided issued” by sanctions against foreign violators. The scope and meaning are too broad to attract users to KYC/permissioned chains.”

Senator Warner’s legislative activities

An X user already post article on Senator Mark Warner’s clear strategy to introduce strategic legislative elements on June 5, allowing the President of the United States to gain sweeping new powers that are scrutinized for digital assets.

The new law defines “digital assets” broadly, including any digital representation of value recorded on a cryptographically secure distributed ledger.

“[…] any communication protocol, smart contract or other software implemented through the use of distributed ledgers or similar technology and […] provides a mechanism for users to interact with and agree to transaction terms for digital assets.”

Only existed at the time Biden

According to the law new, the President can block transactions between U.S. persons and foreign entities determined to support terrorist organizations.

This includes imposing strict conditions on foreign financial institutions that maintain accounts in the United States if they are found to facilitate such transactions.

“[…] prohibits any transaction between any person subject to the jurisdiction of the United States and a foreign digital asset transaction facilitator identified under paragraph (1).”

Implications for users of digital assets

Johnsson’s analysis shows that the broad applicability of the law could force users to join permissioned and KYC-compliant blockchain networks, ultimately limiting them to blockchains that operate under the regulation.

He warned that the move could be seen as an attempt to control digital assets under the guise of fighting terrorism.

The elements that Warner allegedly added to facilitate the granting of powers to the President were borrowed from the Terrorist Financing Suppression Act.

The legislation, introduced in a December 2023 announcement, authorizes the US Treasury Department to address “emerging threats related to digital assets.”

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According to Cointelegraph

Mark Tyson
Mark Tyson
Freelance News Writer. Always interested in the way in which technology can change people's lives, and that is why I also advise individuals and companies when it comes to adopting all the advances in Apple devices and services.
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