According to Odaily, US Senator Mark Warner has recently introduced legislative elements into an anti-terrorism financing bill, granting the US President comprehensive authority to strictly scrutinize digital assets, including the power to broadly prohibit access to digital assets. This move has raised concerns among industry professionals. Scott Johnsson, a figure in the digital asset field, criticized the law's scope as being too broad. He stated, 'It's hard to see this as anything other than the President's power to ban user-level access to any agreement/smart contract, if the Treasury Secretary believes these agreements/smart contracts are controlled, operated, or provided by foreign sanction violators. The scope and impact of herding users onto KYC/licensed chains is shocking.'
The new law broadly defines 'digital assets' as any digital representation of value recorded on a cryptographically protected distributed ledger. Under this new law, the President can prevent Americans from transacting with foreign entities deemed to be supporting terrorist organizations. This includes imposing strict restrictions on foreign financial institutions that facilitate such transactions if found to be opening accounts in the United States.