Jerry Prieto, CEO of the legal non-profit Coin Center, has suggested that US citizens contact their elected representatives due to privacy and fair trial concerns in a new bill proposed by homeowners.
According to Britto’s Twitter post on Wednesday, the House of Representatives’ recently passed “America Rival” bill contains a provision that says it would be a “disaster” for crypto users in terms of privacy and fair trial. . According to the director of the Coin Center, part of the “Prohibitions or Conditions on Certain Funds Transfers” bill proposed by Representative Jim Hymes would give the US Treasury Secretary “unilateral and undisciplined authority to ban exchanges and other financial institutions from engaging in cryptocurrency transactions.” . . ”
Under the proposed structure, the Treasury Secretary would be able to use the Bank Secrecy Act to require certain financial institutions to disclose information about transactions that might involve money laundering, as well as prevent them from serving account holders with such alleged links. for illegal means. This provision, according to Britto, essentially bypasses the checks and balances based on the powers of the finance minister in this area.
“First, the law requires the Treasury to interact with public norms before imposing a ban,” Prieto said. “Second, the Secretary may impose a measure of observation by order simple, but of a duration of 120 days and which must be accompanied by a general wording of the rules […] Even if there is no full trial, such restrictions are in at least notifying the public and giving the public an opportunity to comment on Advantages or constitutionality of the procedure”.
US competition law mentions cryptocurrencies used for payments in ransomware attacks on US companies. According to Peter Van Valkenburg, director of research at the Britto and Coin Center, lifting the restrictions on Treasury powers in “special procedures” could have serious repercussions for individuals and companies operating in the cryptocurrency space:
“[The act] gives the Secretary of the Treasury unsupervised authority to prevent financial institutions (including crypto exchanges) from offering their clients access to crypto networks. The secretary cannot immediately use this right, but it is not within the department’s prerogative.”
Related: US Treasury Says It Needs to “Update and Adapt” to Cryptocurrencies
The balance between regulating cryptocurrencies, providing users with false anonymity, and introducing innovative technologies into today’s financial systems is difficult. Prieto’s call for his followers to contact his representatives over potential privacy concerns may be of some help, given current Treasury Secretary Janet Yellen’s views on the region. During an approval hearing in January 2021, Yellen stated that cryptocurrency was a “special interest” of the US Treasury, linking several token projects to “illegal financing” and money laundering.