Galaxy: Senate Crypto Draft Expands Treasury Surveillance Powers

Galaxy Research warned a draft US Senate crypto bill could massively expand Treasury monitoring powers, calling it the biggest shift since the Patriot Act.
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Galaxy Research warned that a draft crypto market structure bill now in the US Senate could hand the Treasury Department sweeping new monitoring and enforcement tools, framing it as the biggest expansion of financial surveillance since the 2001 Patriot Act.

In its read of the draft, Galaxy pointed to three pressure points: the ability to freeze certain digital-asset transactions for up to 30 days without a court order, an expansion of Treasury ā€œspecial measuresā€ designations for platforms or transaction categories, and new language that could push sanctions and AML obligations toward DeFi front ends and software layers. The net effect, Galaxy argues, is a material shift in how financial privacy would work for digital assets.

With the bill under Senate Banking Committee discussion, the next catalyst is whether lawmakers add guardrails such as clearer judicial oversight and tighter limits on executive discretion before the text advances. Market participants will be watching for updated drafts that narrow the scope of DeFi obligations and transaction-freeze authority.

Source: Galaxy Research.


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