TikTok Ban’ Bill Also Be a Threat to Bitcoin?

TikTok Ban’ Bill Also Be a Threat to Bitcoin?




TikTok Ban’ Bill Also Be a Threat to Bitcoin?





A controversial bill to ban the popular social media app
TikTok could potentially be used to clamp down on crypto, say legal policy
experts at Coin Centre. The crypto-focused non-profit claimed that, in extreme
cases, the legislation could be used to “block Americans’ access to open source
tools or protocols like Bitcoin.”







A Silent Attack on Crypto?





The Restricting the Emergence of Security Threats that Risk
Information and Communications Technology Act (aka RESTRICT Act), introduced on
March 7th, would give the Department of Commerce broad authority to regulate
tech products produced in countries with adversarial relations to the United
States.


 Specifically, the
department would be required to investigate and prevent uses of such technology
which involve adversarial interests, and which pose a national security risk to
the United States. According to Coin Centre, the bill’s language could be open
to an overly broad interpretation that prevents Americans from accessing
“entire classes of technologies,” whether or not foreign adversaries have an
interest in the technology.


“We would object to an overbroad interpretation of
“interest” wherein the Secretary attempted to argue that the entire class of
all Bitcoin transactions, for example, is a class of transactions in which U.S.
foreign adversaries have an interest,” read Coin Centre’s statement.


 The non-profit
likened the new legislation to the currency Office of Foreign Asset Control
(OFAC) regime, which allows it to block Americans from transacting with
sanctioned foreign powers. OFAC came under scrutiny last August when it added
Tornado Cash’s immutable smart contracts to its list of sanctioned entities,
which Coin Centre argued could be a violation of the First Amendment.


 However, unlike
OFAC’s powers granted under the Emergency Economic Powers Act (IEEPA), the
RESTRICT Act doesn’t contain a carve-out for protected speech activities, nor
does it require the President to declare a national emergency before preventing
transactions.


 “A broad and
discretionary power to ban and disrupt all manner of information technologies
should not be wielded without appropriate oversight and opportunity for review,”
wrote Coin Centre.














Regulatory Pressure
on Crypto



The crypto industry has been targeted with all manners of
lawsuits and legislation this month that critics argue could push the emergent
sector overseas.


 The Securities and
Exchange Commission (SEC) slapped crypto exchange Kraken with a $30 million
fine last month for failing to register is staking services as a security. Last
week, the agency targeted Coinbase with a Wells Notice for providing a similar
product.


 Regulators including
the Treasury Department also forced Signature Bank to close earlier this month
– one of the United States’ most crypto-supportive banks. A former congressman
and board member for the bank, Barney Frank, claimed the regulators did this
deliberately to send an “anti-crypto message.”





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