U.S. Treasury Urges Congress to Allow Crypto Platforms to Freeze Suspicious Funds

TheNewsCrypto2026-03-09 tarihinde yayınlandı2026-03-09 tarihinde güncellendi

Özet

The U.S. Treasury is urging Congress to pass legislation that would grant cryptocurrency platforms the legal authority to temporarily freeze funds linked to suspicious or illegal activities. This proposal, tied to the GENIUS Act, aims to address a current gap where exchanges can detect but not always legally halt such transactions. A legal framework would protect platforms from lawsuits and enable quicker action to prevent funds from being moved or laundered. While intended to improve cooperation with law enforcement, the proposal raises concerns about transparency and legal complexities, such as disclosure requirements to users and constraints due to ongoing investigations. The move reflects broader efforts to regulate digital assets amid ongoing legislative debates.

The U.S. government is asking Congress to consider a new rule that allows crypto platforms to temporarily freeze suspicious funds linked to illegal activities. This proposal comes from the U.S. Department of the Treasury, which is connected to the GENIUS Act. This act focuses on the tools to protect against financial crimes involving digital assets.

Reason behind the Treasury’s need for this law

Right now, crypto exchanges can detect suspicious transactions through blockchain tracking tools, but they do not always have a clear legal authority to freeze them. This creates problems, like if the exchanges let the transaction continue, then the funds could disappear quickly, and if the exchanges freeze the funds without legal protection, they could face lawsuits. This law creates a legal framework allowing exchanges to temporarily hold suspicious assets.

If the law receives approval, crypto exchanges could halt transfers before criminals shift their funds across multiple wallets. Supporters say this would strengthen cooperation between crypto companies and law enforcement agencies. The temporary freeze could stop money from being stolen or illegal funds from being used within minutes.

Legal experts say that the proposal raises several complicated issues. Andrew Rossow, who was a public affairs attorney, explained that the banks already have limited powers to delay suspicious transactions. Another concern involves transparency rules. If a platform freezes someone’s assets, it may have to disclose the freeze to the users. At the same time, financial reporting laws may prevent the platform from explaining the investigations.

President Donald Trump has been urging Congress to move faster on the digital assets legislation as regulators and banks argue over how the industry should be governed. This treasury proposal aims to close a major gap by giving exchanges clear authority to freeze suspicious funds.

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İlgili Sorular

QWhat is the U.S. Treasury asking Congress to allow crypto platforms to do?

AThe U.S. Treasury is asking Congress to allow crypto platforms to temporarily freeze suspicious transactions linked to illegal activities.

QWhat is the name of the act that this Treasury proposal is connected to?

AThe proposal is connected to the GENIUS Act, which focuses on tools to protect against financial crimes involving digital assets.

QWhat is the main problem the new law aims to solve for crypto exchanges?

AThe main problem is that crypto exchanges can detect suspicious transactions but currently lack clear legal authority to freeze them, which creates a risk of funds disappearing or the exchanges facing lawsuits.

QAccording to the article, what is one potential benefit if this law is approved?

AIf approved, the law would allow crypto exchanges to halt transfers before criminals can move funds across multiple wallets, potentially stopping stolen or illegal funds from being used within minutes.

QWhat is one concern that legal experts have raised about this proposal?

ALegal experts are concerned about transparency rules, as a platform that freezes assets may have to disclose the freeze to users, while financial reporting laws may simultaneously prevent it from explaining the ongoing investigations.

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