{"id":9088,"date":"2024-06-06T11:31:41","date_gmt":"2024-06-06T11:31:41","guid":{"rendered":"https:\/\/www.cryptometer.io\/news\/?p=9088"},"modified":"2024-06-06T11:31:43","modified_gmt":"2024-06-06T11:31:43","slug":"new-u-s-law-grants-president-power-to-block-digital-asset-access","status":"publish","type":"post","link":"https:\/\/www.cryptometer.io\/news\/new-u-s-law-grants-president-power-to-block-digital-asset-access\/","title":{"rendered":"New U.S. Law Grants President Power to Block Digital Asset Access"},"content":{"rendered":"\n<p>A recently enacted U.S. law has granted the president unprecedented authority to block access to digital assets, sparking widespread concern about its broad implications and potential impact on users. Effective June 6, this law provides the U.S. president with extensive power to block access to digital assets. Scott Johnsson, a prominent figure in the digital assets field, has criticized the law&#8217;s broad scope. He remarked:<\/p>\n\n\n\n<p>\u201cIt\u2019s hard to see how this isn\u2019t intended to be a user-level ban power by the President on any protocol\/smart contract that\u2019s deemed by the Treasury Secretary to be &#8216;controlled, operated or [made] available&#8217; by a foreign sanctions violator. Breathtaking scope and implications to corral users to KYC\/permissioned chains.\u201d<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Legislative Maneuvering<\/h3>\n\n\n\n<p>Senator Mark Warner reportedly facilitated the law&#8217;s provisions by strategically inserting elements that expanded the president&#8217;s powers over digital assets. The new law defines \u201cdigital assets\u201d broadly, including any digital representation of value recorded on cryptographically secured distributed ledgers. It encompasses:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Any communication protocol<\/li>\n\n\n\n<li>Smart contracts<\/li>\n\n\n\n<li>Other software deployed through distributed ledger technology<\/li>\n\n\n\n<li>Mechanisms for users to interact and agree on trade terms for digital assets<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Presidential Authority Under the New Law<\/h3>\n\n\n\n<p>Under this legislation, the president can block transactions between U.S. persons and foreign entities identified as supporting terrorist organizations. Additionally, the law imposes stringent conditions on foreign financial institutions maintaining accounts in the U.S. if they are found facilitating such transactions. The law clearly states:<\/p>\n\n\n\n<p>\u201cprohibit any transactions between any person subject to the jurisdiction of the United States and a foreign digital asset transaction facilitator identified under paragraph (1).\u201d<\/p>\n\n\n\n<p>Also Read: <a href=\"https:\/\/www.cryptometer.io\/news\/biden-urged-to-act-on-binance-execs-detention-in-nigeria\/\">Biden Urged to Act on Binance Exec\u2019s Detention in Nigeria<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Implications for Digital Asset Users<\/h3>\n\n\n\n<p>Johnsson&#8217;s analysis suggests that the law&#8217;s broad applicability could force users to move to Know Your Customer (KYC)-compliant and permissioned blockchain networks. Consequently, this shift might limit users to regulated blockchains, effectively exerting control over digital assets under the guise of combating terrorism.<\/p>\n\n\n\n<p>The elements added by Warner are reportedly borrowed from the Terrorism Financing Prevention Act, introduced in December 2023. This act allows the U.S. Treasury Department to address \u201cemerging threats involving digital assets.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A recently enacted U.S. law has granted the president unprecedented authority to block access to digital assets, sparking widespread concern about its broad implications and potential impact on users. Effective June 6, this law provides the U.S. president with extensive power to block access to digital assets. Scott Johnsson, a prominent figure in the digital [&hellip;]<\/p>\n","protected":false},"author":18,"featured_media":8270,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[43,40],"tags":[],"class_list":{"0":"post-9088","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-general-news","8":"category-regulation"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.2 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>New U.S. Law Grants President Power to Block Digital Asset Access<\/title>\n<meta name=\"description\" content=\"A recently enacted U.S. law has granted the president unprecedented authority to block access to digital assets, sparking widespread concern about its\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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