Galaxy warns US crypto bill expands record financial oversight

Galaxy Research believes that the draft crypto market structure bill currently circulating in the U.S. Senate Banking Committee could significantly expand the financial oversight authority of the Department of the Treasury, to the largest extent since the USA PATRIOT Act of 2001.

According to Galaxy’s analysis, the draft grants the Department of the Treasury new tools such as expanding the “special measures” authority over digital assets, allowing for the suspension or freezing of transactions without a court order, and requiring clarification of sanctions and AML obligations for DeFi frontends operating in the U.S.

Galaxy warns that these “temporary hold” mechanisms will make it easier for law enforcement agencies to request transaction disruptions, along with liability shields for compliant entities, thereby significantly increasing the government’s financial oversight capabilities.

While some believe the draft is a step forward in the legal framework, industry insiders are concerned that it still leaves many risks related to privacy, compliance, and the implementation of crypto in real-world business activities, especially with stablecoins and on-chain applications.