US senator seeks to rub bill provision thats a potential disaster for crypto

Crypto has garnered the attention of every government globally. Some of the governments are embracing these assets, but some are finding ways to outright ban them as they cannot control the industry. Recently, Ted Budd, North Carolina Representative has submitted a bill to the omnibus America COMPETES Act of 2022. The amendment specifically targets the provision that would allow the Treasury Department to outright “special measures”. Such measures include, monitoring and imposing bans against certain transmittals of funds.

US Treasury could give a major blow to crypto

According to Ted Budd, the provision would let the Treasury unilaterally ban certain financial transactions without public input. It is also noteworthy that executives of cryptocurrency advocacy group Coin Center had earlier showered some light on the provision. 

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As per the group, the amendment introduced by Jim Himes, the Connecticut Representative, that would potentially scrap the existing checks constraining the US Treasury’s power to unilaterally prohibit financial transactions. Notably, Such checks include the requirement of public consultation and time limits on special measures orders.

What if the proposal passes?

If the proposal passed in its current form, the provision would deal a major blow. According to Jerry Brito, the group’s executive director the blow will not only harm the digital assets industry, but to privacy and due process generally.

Ted Budd echoed that the Treasury Departmentshould not have unilateral authority to make sweeping economic decisions without providing full due process of rulemaking. Moreover, he believes that the provision would never help the nation to compete with China. Ultimately, the nation will then have to employ the Chinese heavy-handed playbook to snuff out financial innovation in the United States.

Amendment or a question of massive mistake?

Such rules that could adversely affect the crypto ecosystem become huge is a practice that first came into the spotlight last year. In contrast, it all came without a public decision. And the bill introduced a highly contentious definition of a crypto asset broker to the Infrastructure Investment and Jobs Act.