US President Granted Authority to Regulate Cryptocurrency Due to Terrorism Worries
Key Points
– Recent U.S. legislation gives the president new powers to regulate cryptocurrency to address terrorism concerns.
– President can now block transactions with foreign entities tied to terrorist groups.
– Law changes include penalties for violations and a process for judicial review of classified information.
A revolutionary law has been passed, granting the U.S. president extensive authority to oversee the use of cryptocurrency, causing alarm among many spectators. This fresh regulation allows the president to intervene in transactions between American citizens and foreign entities associated with terrorist organizations.
Crackdown on Cryptocurrency
The legislation mandates the Secretary of the Treasury to identify and report any foreign banks or cryptocurrency facilitators that knowingly engage in significant transactions with terrorist groups. This identification process must be completed within 60 days of the law’s enactment and repeated regularly.
Upon identification, the president has the power to either prohibit or place strict conditions on the establishment or operation of accounts by these foreign banks in the U.S. Additionally, the president can stop any transactions involving American entities with foreign digital asset facilitators.
However, there are concerns in some circles that this move could be an effort to control cryptocurrency under the guise of counterterrorism measures.
Exercise of Executive Authority
Through sections 203 and 205 of the International Emergency Economic Powers Act (IEEPA), the president can enforce these measures, including imposing penalties on individuals or entities found in breach, as detailed in section 206 of the IEEPA.
Transparency and Oversight
The law also sets out procedures for judicial review of classified information. If conclusions or penalties are based on classified data, the Secretary of the Treasury can present this information to the court ex parte and in camera, allowing the judge to privately review it without public disclosure.
Balancing National Interests and Intelligence
There are provisions for exemptions from sanctions if it is determined to be in the national interests of the United States. The Secretary of the Treasury must notify Congress of these exemptions, along with a statement explaining the reasoning. There is also a carve-out for intelligence activities, ensuring that these measures do not hinder authorized intelligence operations.
Is it Time for Stricter Regulations?
Moreover, the law modifies section 5318A of title 31, United States Code, to introduce new restrictions or conditions on certain fund transfers. If the Secretary of the Treasury deems that specific jurisdictions, institutions, or transactions pose a substantial money laundering risk, they are authorized to impose conditions on fund transfers involving these entities.
These changes empower the Secretary, in collaboration with other relevant officials, to take action against domestic financial institutions or agencies involved in these “high-risk transactions.”
Tags: Crypto Regulations