Galaxy Warns Senate Crypto Bill Expands Treasury Surveillance Powers

Galaxy Digital has cautioned that a draft crypto market structure bill from the US Senate Banking Committee significantly expands the Treasury Department's surveillance and enforcement capabilities, potentially representing the largest increase in financial oversight authority since the US Patriot Act. The primary concern centers on a new crypto-specific “special measures” authority, which would allow the Treasury to designate foreign jurisdictions or transaction classes as major money-laundering concerns, enabling restrictions on crypto fund transfers. Furthermore, the bill introduces a “temporary hold” framework allowing agencies to freeze digital asset transactions for up to 30 days without a court order. It also seeks to bring crypto front ends, such as web interfaces for DeFi protocols, under sanctions and AML compliance. Galaxy noted that these provisions, if enacted, would constitute a massive expansion of financial surveillance. Conversely, the Crypto Council for Innovation (CCI) welcomed the engagement shown in the draft text, emphasizing the need for consumer choice and competition in any final framework.

(Source：Cointelegraph)