The unpredicted nature of the crypto industry might force the US Treasury Department to cease inter-border crypto transactions. The crypto market has displayed warning signs for international trade recently. The government will decide upon the viability of every financial transaction across borders. Yahoo Finance reports that the US Treasury Secretary might block the transaction under the American COMPETES Act. The US Representatives reviewed the bill’s provisions last week and are yet to issue a statement. The bill focuses on countering the Chinese economic competition.
The bill provides the US Treasury S8ecretary with the power to block each US financial organization from indulging in cross-border financial transactions. Yahoo Finance reports that US department will likely end crypto transactions, including non-US miner or non-custodial wallets. Yahoo Finance quoted Coin Center’s blog post regarding the issue; it reads, “In brief, it would hand the Treasury Secretary unchecked discretion to forbid financial institutions (including cryptocurrency exchanges) from offering their customers access to cryptocurrency networks. The Secretary may not use his discretion immediately, but it is not power the Department should have.”
The Treasury Secretary Has Limited Powers To Restrict Transactions
The reports suggest that the current law allows the Treasury Secretary to restrict crypto transactions after consulting the Federal Reserve Chair, Secretary of State, federal regulators, and other departments. The Treasury Secretary will need to issue a public rulemaking notice valid for 4 months from the issue date. The restriction will cease to exist after the 120 days unless the Treasury Department decides to expand the limitation after the expiration of the comment period.
Bill Won’t Materialize Even After Approval.
Yahoo Finance quoted the bill’s statements; it said, “Ransomware attacks on US companies requiring payments in cryptocurrencies have increased in recent years, with the US Treasury estimating that ransomware payments in the United States reached $590 million in just the first half of 2021, compared to a total of $416 million in 2020.” The reports say that several lawmakers are against the bill’s approval and are unlikely to pass it. Even after the approval, the bill has a tough road ahead; it doesn’t have a counterpart in the Senate version, the Endless Frontier Act. The House and the Senate will eliminate the differences between both bill versions.