US Treasury Calls on Congress to Grant More Law Enforcement Powers in the Cryptocurrency Sector All Stablecoins Must be Regulated

Expand Law Enforcement Authority in the Cryptocurrency Field
Regulate All US Dollar Stablecoins
According to CoinDesk, Wally Adeyemo, the Deputy Secretary of the US Department of the Treasury, recently stated in a speech in Washington that he has submitted a written proposal to US lawmakers, hoping that legislators can grant the government more enforcement powers, tools, and resources in the cryptocurrency field to track down illicit actors in the industry. The written proposal states:
The proposal suggests that Congress grant the Treasury Department “new secondary sanctions tools against exchanges supporting terrorism.” This tool could give the government similar enforcement powers over cryptocurrency exchanges as it has long had over correspondent bank accounts. Wally Adeyemo stated that this could not only sever a company’s ties to the US financial system but also expose any company that continues to do business with sanctioned entities to the risk of being cut off from the US financial system.
Furthermore, Wally Adeyemo also urged Congress to add new categories of financial institutions under the Bank Secrecy Act, including cryptocurrency exchanges, virtual asset service providers (VASPs), virtual asset wallet providers, certain blockchain verification nodes, and decentralized finance services, and require them to meet specific anti-money laundering requirements.
In addition, the US Department of the Treasury appears to be seeking to expand control over Tether (the issuer of USDT) and other similar stablecoins. The proposal suggests explicitly authorizing the Office of Foreign Assets Control (OFAC) to exercise extraterritorial jurisdiction over transactions involving “dollar-pegged stablecoins.” In other words, even if some transactions do not take place in the US and do not involve US citizens directly, the US government still wishes to assert jurisdiction over these stablecoin transactions pegged to the US dollar, indicating its desire to expand regulatory capabilities over cryptocurrency transactions on a global scale.
In his speech in Washington, Wally Adeyemo emphasized: