Senate crypto bill could mark biggest financial surveillance expansion since the Patriot Act, Galaxy says

Galaxy Research, via Head of Firmwide Research Alex Thorn, stated that the new Senate Banking Committee draft of the crypto market structure bill contains sweeping new authorities for the U.S. Treasury, potentially representing the largest expansion of financial surveillance powers since the USA PATRIOT Act. While the draft includes industry wins like preserving self-custody rights, the concern lies in its approach to illicit finance. The bill would allow the Treasury to impose special measures on digital asset transactions, introduce a "temporary hold" mechanism to freeze transactions without a court order, and extend AML obligations to blockchain front ends and some DeFi applications. This contrasts with the House's Clarity Act, which was narrower in scope. The Senate Banking Committee is scheduled to vote on the bill soon, but any final legislation must reconcile committee versions and secure 60 Senate votes.

(Source：The Block)