The Potential Impact of the America COMPETES Act on Cryptocurrency
Jerry Brito, the executive director of Coin Center, isn’t one to hold back his thoughts, especially when it comes to proposed legislation that could zap the rights of crypto enthusiasts. The recently unveiled America COMPETES Act has raised alarms across the crypto community, and Brito has taken to Twitter to sound the alarm, emphasizing how this bill could be catastrophic for privacy and due process.
The Power Struggle Between Congress and the Treasury
At the heart of Brito’s concerns is a provision that would grant the U.S. Secretary of the Treasury apparently endless powers over cryptocurrency transactions. That’s right, folks. Imagine a world where one person holds the power to dictate who gets to play in the crypto sandbox. Representative Jim Himes proposed this section, suggesting that the Treasury Secretary could prohibit financial institutions from participating in crypto transactions without so much as breaking a sweat.
What Does This Mean for Crypto Users?
Under the proposed legislation, the Treasury Secretary could leverage the Bank Secrecy Act to mandate certain financial institutions report transactions they suspect may be linked to money laundering activities. And if that’s not scary enough, the Secretary could potentially cut off those financial institutions from serving customers who might be connected to alleged illegal activities. It’s a solid one-two punch to the notion of due process.
Checks and Balances — Or Lack Thereof?
Brito points out that current laws require the Treasury to adopt a public rulemaking process before implementing a prohibition. Yes, there are some rules in place, but Brito argues this doesn’t provide full protection against the potential chaos that could ensue if the bill passes. The limitations now in place allow for public commentary, but those joys could go the way of the dodo if unchecked power reigns supreme.
The Ransomware Argument: Are We Buying It?
The America COMPETES Act tosses around the notion that cryptocurrencies are often used in ransomware cases, making the argument for more stringent regulations. Sure, let’s throw the baby out with the bathwater! But what about the privacy rights of legitimate users? Brito and research director Peter Van Valkenburgh of Coin Center caution that relinquishing this power to the Treasury Secretary could lead to a slippery slope of surveillance and restrictions, impacting innocent crypto users along the way.
A Call to Action: Contact Your Representatives!
As all this crypto drama unfolds, Brito is rallying the troops (a.k.a. crypto users) to make some noise. He believes that reaching out to elected officials and voicing concerns could serve as an essential step in safeguarding individual rights in the crypto realm. Given that Treasury Secretary Janet Yellen has expressed concerns about crypto being linked to illicit activities, the time for action is now — because nobody wants to wake up one day to find out their night of fun buying NFTs turned into a privacy nightmare!
