According to Jerry Brito, executive director of Coin Center, an industry think tank that pushed against the provision, an agreement has been struck to remove a provision in a U.S. House of Representatives bill providing the Treasury secretary the right to stop international crypto transactions.

Rep. Jim Himes (D-Conn.), who proposed the amendment, tweeted, “Thanks for working with us on this @jerrybrito.” Good outcome.”

A provision in the America COMPETES Act, a bill introduced in the United States House of Representatives last week, would have permitted the Treasury secretary to block or “impose conditions” on transactions if the official realized that the transaction or the accounts involved were involved in money laundering. The total bill is intended to boost economic competitiveness with China.

However, Coin Center noted in a blog post that the law might empower the Treasury secretary to prohibit all U.S. financial institutions from engaging with a crypto exchange, a jurisdiction hosting crypto exchanges, and crypto transactions certified by a non-U.S. miner or non-custodial wallets.

Under current law, the Treasury secretary has the authority to place such limits on transactions in conjunction with the chairman of the Federal Reserve, the secretary of state, federal regulators, and other agencies. 

However, the limitation must be accompanied by a public rulemaking notice, and it expires after 120 days unless the Treasury Department develops a rule that extends the block after the comment period.

According to Coin Center, the proposed clause would have deleted the comment period and the 120-day expiration date, as well as expressly adding digital assets to the categories of financial transactions that the Treasury secretary might limit.

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Patrick

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