• The Restrict Act, proposed by Senators Warner and Thune, intends to stop or disrupt financial holdings and transactions with foreign enemies threatening the country’s security.
• Coin Center raised concerns that if the Restrict act is passed, it might be used broadly and unanticipatedly, affecting cryptocurrencies.
• Experts are theorizing on possible abuses of the act and potential dangers to cherished technologies, including cryptocurrencies.
Restrict Act Proposed by US Senators
The Restrict Act, proposed by Senators Warner and Thune, intends to stop or disrupt financial holdings and transactions with foreign enemies threatening the country’s security. It was introduced in response to allegations that the Chinese-owned TikTok app collects user data for the Chinese government. To comprehensively address the persistent threat of foreign technology, the act grants the Commerce Department new authority to examine, prevent, and mitigate information communications and technology transactions that represent an unreasonable risk to our national security.
Crypto Could Be Affected
Think tank Coin Center raised concerns in a press release stating that if the Restrict act is passed, it might be used broadly and unanticipatedly, affecting cryptocurrencies. The bill’s language has the potential to be used to prevent or disrupt crypto transactions. It will deny Americans access to protocols like bitcoin (BTC) in extreme situations. However, the primary targets of this legislation are companies like TikTok.
Foreign Enemies Covered By Act
The foreign enemies of the United States listed in Title 15 of the Code of Federal Regulations are China, Cuba, Hong Kong, North Korea, Iran, Russia, and the Maduro regime in Venezuela. The act potentially gives the Treasury’s Office OFAC power to prevent Americans from doing business with sanctioned parties. According to Coin Center this law could be abused too outlaw a particular technological class such as Tornado Cash’s immutable smart contracts which have been sanctioned by OFAC already..
Coin Center Concerned About Abuse Of The Law
Coin Center is concerned about this law being abused as it has potential implications for cherished technologies such as cryptocurrencies which may restrict US citizens from accessing these protocols in extreme cases if they fall under scrutiny from OFAC or other government entities..
What’s Next In US Crypto Regulation?
It remains unclear what further implications this law may have for cryptocurrency going forward but one thing is certain: US lawmakers need top closely monitor how this law is being used so it does not have unintended consequences for cherished technologies such as cryptocurrency..