Galaxy warns Senate crypto bill gives US Treasury massive surveillance power

Galaxy says the draft crypto market structure bill would give the US Treasury new powers to freeze transactions and deploy Patriot Act–style measures.

Galaxy Digital warned that a draft crypto market structure bill released by the US Senate Banking Committee would hand the Treasury Department sweeping new surveillance and enforcement tools, describing it as the biggest expansion of financial oversight authority since the US Patriot Act.

In a research note published Tuesday, Galaxy said the Senate proposal goes far beyond the House-passed CLARITY Act, particularly on illicit finance provisions. At the center of Galaxy’s warning is a new crypto-specific “special measures” authority.

The authority would allow the Treasury to designate foreign jurisdictions, financial institutions or entire classes of digital asset transactions as primary money-laundering concerns, giving it the power to restrict or condition certain crypto fund transfers. Galaxy compared this to tools created under the Patriot Act, noting that it could be applied broadly across offshore venues and transaction rails.

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