A recent legislation has given the President of the United States extensive authority to restrict access to digital assets, prompting concern among X commentators. Scott Johnsson, a well-known figure in the digital assets industry, voiced his criticism of the law on June 6, highlighting its wide-ranging implications.
A user on X raised concerns about Senator Mark Warner’s strategic inclusion of legislative components on June 5, which paved the way for the controversial new powers granted to the U.S. president over digital assets. The legislation defines “digital assets” broadly as any digital representation of value recorded on secure distributed ledgers.
According to the new law, the president has the authority to block transactions between U.S. individuals and foreign entities that are linked to terrorist organizations. This includes imposing strict regulations on foreign financial institutions with accounts in the U.S. if they are found to be facilitating such transactions.
Johnsson’s analysis suggests that the law’s broad scope may force users to participate in Know Your Customer (KYC)-compliant and permissioned blockchain networks, restricting them to regulated blockchains. He warns that this move could be perceived as an attempt to control digital assets under the guise of counterterrorism efforts.
The legislative provisions that allegedly empower the president were derived from the Terrorism Financing Prevention Act, which was introduced in a announcement in December 2023. This act enables the U.S. Treasury Department to address “emerging threats related to digital assets.”
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