US Senator Elizabeth Warren, known for being against bitcoin (BTC) and cryptocurrencies, proposed a bill called the Digital Asset Sanctions Enforcement Enhancement Act. The goal, she said, is to prevent Russia from benefiting from its use in the face of economic sanctions imposed by the United States.
The proposal would “combat the risk of Russia using digital assets to evade international sanctions by discouraging foreign cryptocurrency companies from doing business with sanctioned Russian elites,” explains the document presented on March 16.
Additionally, it gives the United States authority to “suspend transactions with Russia-linked cryptocurrency addresses, and increase transparency around cryptocurrency holdings.”
However, there are those who maintain that behind Warren’s proposal lies something much larger, that to the detriment of the industry bitcoin and cryptocurrencies.
one of which made their suspicions known was Coin Centeran organization that is dedicated to research and analysis of legislation on cryptocurrencies and decentralized technologies.
Coin Center explained that Warren’s proposal would impose “broad restrictions on the cryptocurrency ecosystem under the guise of tightening sanctions against Russia for its unwarranted invasion of Ukraine,” according to a report. publication made on your website.
The organization suggests that Warren introduced the bill, even though the White House, the FBI and the Treasury Department all claimed that there is no data to determine that the sanctioned parties have used, or may use the cryptocurrencies to evade sanctions.
“The bill would place broad restrictions on people who build, operate, and use cryptocurrency networks, even if they have no knowledge or intent to help someone evade sanctions,” notes Coin Center.
The Coin Center Concern
Among the points that most concerns the organization is Section 4 of the proposal.
There, the Secretary of the Treasury is empowered to implement a total ban without distinction to BTC exchanges and other non-custodial cryptocurrencies doing business with any person or any cryptocurrency address “known to be, or reasonably likely to be, affiliated with persons” in Russia.
According to Coin Center, this provision allows the Secretary of the Treasury to “arbitrarily” prohibit software developers, miners, and node operators from having any “commercial” interaction with any person or address that may be Russian.
They consider that it is a “broad and vague” power to “direct the behavior of countless Americans”, in addition to the fact that, in their opinion, it will do “little or nothing” to prevent the Russian state or the oligarchs from evading sanctions.
re»Target ordinary citizens [rusos] that they could be the greatest allies of the West against a regime they did not choose is not a good strategy, “they explain.
Additionally, there is another point in the proposal that also directly affects US citizens, since, according to the document must make a statement for each transaction made for an amount greater than USD 10,000 with cryptocurrencies abroad.
Warren wants to regulate Bitcoin
Warren’s proposal is not surprising, since he has always been an anti-cryptoactive voice in the United States.
The senator went so far as to qualify Bitcoin as a “risk” for the US financial system, considering that it is controlled by “dark super programmers” with bad intentions, as reported by CriptoNoticias.
It has also repeatedly called for legislation that mitigate the risks posed by Bitcoin and other related financial instruments, such as pegged cryptocurrencies or stablecoins and decentralized finance (DeFi) platforms.