Amid ongoing political tension between the US and Russia, crypto addresses owned by Russian traders could be locked out of the US market.
Meanwhile, Russia has suspended trading in dollars and euros on its leading financial marketplace, the Moscow Stock Exchange.
Russia-Linked Crypto Addresses Face US Ban
US politician Brad Sherman has applied to amend the National Defense Authorization Act (NDAA) bill. Filed with the US House Rules Committee, the California Democrat wants a specific clause in the NDAA.
The US Treasury Secretary would be mandated to prohibit digital asset trading platforms and transaction facilitators within the US from transacting with Russia-linked cryptocurrency addresses.
“The Secretary of the Treasury may require that no digital asset trading platform or digital asset transaction facilitator that does business in the United States transact with, or fulfill transactions of, digital asset addresses that are known to be, or could reasonably be known to be, affiliated with persons headquartered or domiciled in the Russian Federation if the Secretary,” read a clause in the official filing.
Notably, this is contingent on whether the Secretary determines that exercising such authority is of national interest. The decision hinges on the Secretary’s assessment of the broader implications for national security and public welfare.
Read more: Top 3 Methods for Cross-Border Money Transfer Using Crypto
Brad Sherman also has a regulation for US taxpayers moving over $10,000 worth of crypto outside the country. Under the proposed bill, they must file with the US Financial Crimes Enforcement Network (FinCEN).
“The Financial 21 Crimes Enforcement Network shall require United States persons engaged in a transaction with a value greater than $10,000 in digital assets through 1 or more accounts outside of the United States to file a report described in section 1010.350 of title 31, Code of Federal Regulations, using the form described in that section, in accordance with section 5314 of title 31, United States Code,” the filing says.
Sherman also wants the Treasury Secretary to expose crypto exchanges deemed high risk for illicit activities, including sanctions evasion and money laundering.
“This is actually pretty bullish considering it’s coming from Sherman. This guy has been trying to kill crypto so hard and these two things just prove that he has capitulated and understands it’s not going away,” said investor Guinness Stache.
Notably, Sherman compared crypto to drugs and organ harvesting at one point, arguing that crypto industry stakeholders don’t want real regulations. He is also on record calling crypto a major source of tax evasion.
Russia Suspends US and Euro Trading
Reports indicate that lawmakers deem the NDAA a must-pass bill, meaning they consider it critical and necessary for approval. They believe it is essential for the government’s functioning and the implementation of key policies. Because of their importance, must-pass bills usually have a higher chance of approval than other types of legislation.
“Important to note here that the annual defense bill is a must-pass piece of legislation and slipping in seemingly innocuous amendments like this likely wouldn’t affect its passing. We may see more amendments like this as members attempt to get other bills attached to the NDAA, said Fox Business journalist, Eleanor Terrett.
Sherman’s proposed amendment comes after Russia’s move to suspend trading the US dollar (USD) on the Moscow Stock Exchange. This development marks a significant shift in Russia’s financial strategy amidst ongoing geopolitical conflict.
“Due to the introduction of restrictive measures by the United States against the Moscow Exchange Group, exchange trading and settlements of deliverable instruments in US dollars and euros are suspended,” Reuters reported, citing the Russian central bank.
Read more: Data Privacy: 10 Tips to Protect Your Digital Privacy in 2024
The move aims to influence other countries’ attitudes toward the US dollar as a dominant reserve currency. For one, it could compel investors to diversify their currency usage.
“We don’t care, we have Yuan. Getting dollars and euros in Russia is practically impossible,” said one person at a large, non-sanctioned Russian commodities exporter, economist Sasha Breger Bush reported.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
