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Coin Center published a scathing assessment of the RESTRICT Act, saying the bill could be used to ban cryptocurrencies.
The cryptocurrency defense organization highlighted several issues with the bill, including its potential to block and restrict access to open protocols, such as Bitcoin (BTC) grid.
Additionally, Coin Center drew parallels with the existing Office of Foreign Assets Control (OFAC) system. But crucially, they pointed out that the RESTRICT Act differs by restricting remedies, infringing on First Amendment rights.
“The Act creates a redundant regime parallel to OFAC without clear justification, significantly limits the ability of aggrieved parties to challenge actions that raise due process concerns, and, unlike OFAC, lacks exceptions for protected speech. ”.
In August 2022, OFAC-Sanctioned Crypto Mixer Tornado Cash over allegations of laundering $7 billion in digital assets. The broader crypto community viewed the move as another instance of government overreach and an attack on privacy.
At the time, coin center He questioned the legitimacy of sanctioning an inanimate tool “that can have good or bad uses like any other technology.”
The RESTRICT Act
The RESTRICT Act was introduced to the US Senate. 7 of March and sought to ban technologies linked to foreign governments.
Although not specifically mentioned in the bill, it is widely seen as a response to the ban on short-form video platform TikTok.
Under the proposals, the White House Commerce Department would conduct a review of foreign technologies. The Department would then have the authority to respond as necessary, which may include prohibiting the technology if deemed appropriate.
senator warner — who sponsored the bill — said the proposals do not specifically target TikTok. However, he added that, on average, 100 million Americans use the platform for 90 minutes a day. In addition, it is what “everyone talks about”.
Coin Center Warns of General Authority
Coin Center said it is not opposed to sanctioning “real foreign adversaries” such as transactions involving North Korean ransomware incidents. However, he raised concerns that the powers granted by the Act could be used even if there is no foreign adversary.
Similarly, the organization also took issue with the potential scope, misinterpreting the wording, to enact a ban on entire asset classes, such as all Bitcoin transactions.
“If such an unreasonable and overly broad interpretation of the RESTRICT Act were made, we would be fighting in court.”
Former Coinbase CTO balaji srinivasan repeated previous concerns, saying that the Law “It is the Great American Firewall.” Srinivasan added that the United States is becoming “China in the name of beating China.”
The comment was made in reference to a mail claiming that VPN access to banned apps could land the perpetrator up to 20 years in prison and a $250,000 fine.
