US Government Proposes New Law To Block Digital Asset Access

JAKARTA - The United States government is taking bold steps by proposing a new law authorizing the President to block access to digital assets. Senator Mark Warren, who proposed the law, stressed the importance of this move in fighting terrorism. However, this policy has sparked concerns among the crypto community, which sees it as a threat to digital economic freedom.

According to Coin SPEAKer Information, on Thursday, Scott Johnsson, a financial lawyer and supporter of the crypto economy, expressed his anxiety on social media. He warned that this law could give the President the power to intervene in a decentralized financial protocol (DeFi), which could be considered a sanction violation by the US Treasury.

Johnsson highlighted that the law adopted elements from the Terrorist Financing Prevention Act, which allows the Treasury Department to block transactions with sanctioned foreign entities. This raises questions about its impact on the future of the decentralized crypto and financial sectors.

The implications of this law are quite broad, potentially forcing users to switch to blockchain networks that comply with Know Your Customer (KYC) regulations. This could limit their activities to only regulated blockchains, reducing anonymity and freedom that have been the hallmark of the crypto ecosystem.

Johnsson also argued that the law may be part of a broader strategy from the US to control the crypto economy, in the name of anti-terrorism measures. This marks a significant change in the government's approach to digital assets, which were previously more laissez-faire (policies that minimize government interference in market and business affairs).

The law defines crypto assets as digital representations of values secured by cryptographic ledgers, including communication protocols and smart contracts. This demonstrates official recognition of digital assets and their potential in modern economics.

However, the political and legislative climates in the US regarding crypto remain uncertain. On the one hand, there is bipartisan support for financial innovation, as seen in the Financial Innovation and Technology for the 21st Century Act. On the other hand, there are growing concerns regarding the security and regulation of digital assets.

President Joe Biden has shown caution towards laws that have the potential to harm consumers and investors. This confirms that the US government will continue to consider the impact of every new policy on its people.