A recent piece of legislation has given the President of the United States extensive authority to restrict access to digital assets, sparking concern among observers on X.
Renowned figure in the digital assets industry, Scott Johnsson, strongly criticized the law for its wide-ranging implications on June 6, declaring:
In a related development, a user on X highlighted Senator Mark Warner’s strategic incorporation of legal provisions on June 5, which paved the way for the controversial new powers granted to the U.S. president in relation to digital assets.
The legislation defines “digital assets” broadly, encompassing any digital representation of value recorded on secure distributed ledgers.
According to the new law, the president has the authority to block transactions between American citizens and foreign entities that are suspected of supporting terrorist groups.
This includes imposing stringent requirements on foreign financial institutions that hold accounts in the U.S. if they are found to be facilitating such transactions.
Johnsson’s analysis indicates that the law’s wide-ranging scope may compel users to participate in Know Your Customer (KYC)-compliant and permissioned blockchain networks, ultimately restricting them to regulated blockchains.
He cautions that this move could be viewed as an attempt to regulate digital assets under the pretext of combating terrorism.
The provisions allegedly inserted by Warner to enable this presidential empowerment have been borrowed from the Terrorism Financing Prevention Act.
This act, introduced in a December 2023 announcement, empowers the U.S. Treasury Department to address “emerging threats involving digital assets.”
In a separate publication, a magazine detailed how to become a Bali crypto digital nomad, drawing parallels to the author’s experiences.
US president given authority to restrict access to digital assets under new legislation