US President Granted Authority to Regulate Cryptocurrency in Response to Terrorism Concerns
Key Points
– Recent U.S. legislation grants the president enhanced powers to oversee cryptocurrency in efforts to combat terrorism, causing concern.
– The president can block transactions with foreign entities tied to terrorist groups and amend regulations to impose penalties for violations.
– The law requires identifying and reporting foreign banks and crypto facilitators involved in significant transactions with terrorists.
– Executive authority under the International Emergency Economic Powers Act allows for enforcement of these measures.
– The legislation also sets up procedures for judicial review of classified information and waivers for national interests and intelligence activities.
– Amendments to the U.S. Code introduce new restrictions on fund transfers to combat money laundering risks.
A recent groundbreaking law has given the U.S. president significant authority to regulate the use of cryptocurrency, sparking worry among various observers. This new law allows the president to intervene in transactions between American citizens and foreign entities connected to terrorist groups.
Under this legislation, the Secretary of the Treasury must identify and report any foreign banks or cryptocurrency facilitators engaging in significant transactions with terrorist organizations. The president can then either prohibit or place strict conditions on these foreign banks operating in the U.S., as well as stop transactions involving American entities and foreign digital asset facilitators.
While these measures aim to combat terrorism, some fear they may be a way to control cryptocurrency under the guise of counterterrorism efforts.
The president can enforce these regulations under sections 203 and 205 of the International Emergency Economic Powers Act, including imposing penalties on violators according to section 206.
Additionally, the law establishes a process for judicial review of classified information, allowing the Secretary of the Treasury to present this information confidentially to the court.
Furthermore, the law amends the U.S. Code to introduce new restrictions on fund transfers in high-risk transactions, allowing the Secretary of the Treasury to take action against domestic financial institutions or agencies involved in these transactions.
Overall, the new legislation aims to strike a balance between national security interests and intelligence operations while strengthening regulations on cryptocurrency to combat terrorism and money laundering risks.