Crypto Bill Draft Sparks Financial Surveillance Debate
Galaxy Research has raised concerns over the draft version of the crypto market structure bill currently under discussion in the Senate Banking Committee. The firm warns that the proposed legislation could significantly expand financial surveillance powers in the United States, particularly in the realm of decentralized finance (DeFi).
The draft includes key provisions that would allow the US Treasury to freeze digital asset transactions without court approval and implement 'special measures' against digital assets. Alex Thorn, Galaxy Digital's head of firmwide research, noted that the potential implications of these provisions far exceed those of the House's earlier 'CLARITY Act.'
Surveillance Expansion Comparable to the Patriot Act
Thorn emphasized that this bill could represent the largest expansion of financial surveillance authority since the enactment of the USA PATRIOT Act in 2001. That legislation granted federal agencies broad investigative and intervention powers after the 9/11 attacks, significantly reshaping financial oversight in the US.
- Treasury gains enhanced powers to freeze transactions
- New regulatory framework for DeFi platforms
- Actions can be taken without a court order
This move has sparked widespread concern over its potential impact on the free flow of digital assets and financial privacy rights.