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Coin Center has posted a scathing assessment of the RESTRICT Act, saying the bill proposal could be used to ban cryptocurrencies.
Cryptocurrency advocacy group has highlighted several issues with the bill, including its potential to block and restrict access to open protocols such as the Bitcoin (BTC) network.
Additionally, Coin Center is similar to the existing Office of Foreign Assets Control (OFAC) system. But crucially, they violate First Amendment rights, pointing out that his RESTRICT Act differs in that it reduces recourse.
“The law creates a redundant regime similar to OFAC without clear justification, severely limits the ability of victims to challenge behavior that raises due process concerns, and, unlike OFAC, provides a protected It lacks the exclusion of speech.”
In August 2022, OFAC sanctioned cryptocurrency mixer Tornado Cash for allegedly laundering $7 billion in digital assets. The cryptocurrency community generally saw the move as another example of government overreach and an attack on privacy.
At the time, Coin Center questioned the legitimacy of sanctioning inanimate tools that “can be used for good or bad like any other technology.”
restriction law
The RESTRICT Act was introduced in the US Senate. March 7 And tried to ban technology tied to foreign governments.
Although not specifically mentioned in the bill, it is widely believed to be a response to banning short-form video platform TikTok.
According to the proposal, the White House Department of Commerce will review foreign technology. The ministry will then have the authority to respond as necessary. This may include technology bans where deemed appropriate.
senator warner — the originator of the bill — said the proposal wasn’t specifically aimed at TikTok. But he added that on average he has 100 million Americans using the platform for 90 minutes every day. And that’s what everyone is talking about.
Coin Center warns about blanket authority
Coin Center said it would not oppose sanctions on “actual foreign adversaries,” such as transactions related to the North Korean ransomware incident. However, concerns were raised that the powers granted under the Act could be used in the absence of a foreign adversary.
Similarly, the organization has misinterpreted wording and further opposed the potential scope to enact a ban on entire asset classes such as all bitcoin transactions.
“Such an unreasonable and overly broad interpretation of the Restriction Act would be contested in court.”
Former Coinbase CTO Balaji Srinivasan Reiterating earlier concerns, the law states that “America’s Great Firewall. Srinivasan added that the US was becoming “China in the name of beating China.”
The comment is director It said VPN access to banned apps could subject perpetrators to 20 years in prison and a $250,000 fine.
