Galaxy: Senate Crypto Bill Would Give Treasury Sweeping Surveillance Powers
Galaxy said a draft version of the Senate’s crypto market-structure bill would give the U.S. Treasury new authority to freeze transactions and to deploy Patriot Act–style investigative tools against crypto participants. The firm framed the language as creating sweeping surveillance powers that exceed existing financial oversight, potentially allowing the Treasury to monitor, block, or disrupt flows without the kinds of judicial constraints typically associated with seizure or surveillance actions.
If enacted, Galaxy and other industry observers warn the measures could sharply expand compliance costs, chill legitimate on-chain activity, and raise constitutional and privacy concerns for users and custodians. The draft’s approach is likely to intensify debate in the Senate over balancing illicit finance prevention with civil liberties and market innovation as lawmakers consider revisions ahead of markup.