US unveils bill giving Treasury secretary unchecked and unilateral power” to ban crypto transactions, advocate warns – Regulation

A new law introduced in the US includes a provision that would “essentially give the Secretary of the Treasury uncontrolled and unilateral authority” to ban cryptocurrency transactions, crypto advocacy organization Coin Center warned. Treasury Secretary Janet Yellen will be able to ban all crypto transactions “without a process, rulemaking, or limit on the length of the ban.”

America COMPETES Act of 2022 “catastrophic” for crypto

Jerry Brito, executive director of Coin Center, a D.C.-based think tank focused on the public policy issues facing cryptocurrencies, warned of the “ America COMPETES Act of 2022 in a series of tweets on Wednesday. The bill was introduced in the House of Representatives on Tuesday.

Noting that the America COMPETES Act of 2022 is "very likely to pass in some form," Brito explained that it includes the "special measures" provision proposed by Connecticut Congressman Jim Himes, "which would be disastrous not only for cryptocurrency but also for privacy and due process generally." He continued:

The so-called “special measures” provision… would essentially give the Secretary of the Treasury uncontrolled and unilateral authority to prohibit exchanges and other financial institutions from engaging in cryptocurrency transactions.

Currently, "the law requires the Ministry of Finance to make a public regulation before issuing a ban," Brito said, adding that "the minister may, by a simple order, impose a special surveillance measure, but the duration of which is limited to 120 days and must be accompanied by a public rulemaking."

The Center's head outlined that the new provision would do three things.

First, it would add “certain transfers of funds” to the list of things that may be prohibited by the Minister.” Second, it would “eliminate all public notice and comment requirements.” Additionally, it would “eliminate the 120-day limitation on measures imposed without regulation.”

He warned that “if this provision were to be enacted into law, it would be a disaster not only for crypto, but also for the privacy and democratic public processes surrounding *all* types of financial transactions,” stating:

It authorizes the Secretary to prohibit any (or indeed all) cryptocurrency transactions (or any other type of transaction) without process, rulemaking, or limitation on the length of the prohibition.

What do you think of the America COMPETES Act of 2022? Let us know in the comments section below.

Kevin Helms

As a student of Austrian economics, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the interface between economics and cryptography.

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