A new law gives the US president the power to deny access to digital assets
A new law would give the president of the United States the power to block access to digital assets, raising concerns about X from analysts.
Scott Johnson, a prominent voice in the field of digital assets, criticized the law extensively on June 6:
Supervised, directed or directed by the Secretary of the Treasury [made] Available” Foreign Sanctions Violator. Broader implications for Coral users with KYC/authorized chains.
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Senator Warner's legislative approach
An X user posted on June 5 Senator Mark Warner's strategic submission to the legislature that allowed the US president to investigate new surveillance powers over digital assets.
The new law broadly defines “digital assets” to include the digital representation of any value recorded on cryptographically secured distributed ledgers.
“[…] Any communication protocol, smart contract or other software […] Engaged using distributed ledger or similar technology; And […] It provides a means for users to interact and agree on the terms of trading digital assets.
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Just “Biden” time
The new law allows the president to freeze transactions between US persons and foreign entities identified as supporting terrorist organizations.
This includes imposing stricter conditions on foreign financial institutions holding accounts in the US.
“[…] Prohibits any transaction between any person under the jurisdiction of the United States and a foreign digital asset transaction facilitator described in paragraph (1).
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Implications for users of digital assets
Johnson's analysis suggests that the law's broad applicability could force users to join Know Your Customer (KYC)-compliant and permissioned blockchain networks, ultimately limiting them to regulated blockchains.
He warned that the move could be seen as an effort to control digital assets under the guise of fighting terrorism.
The elements added by Warner to enable this presidential power were taken from the Terrorist Financing Prevention Act.
The act was announced in December 2023, allowing the US Department of the Treasury to go “emergencies related to digital assets”.
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