Galaxy Warns Clarity Bill Could Dramatically Expand U.S. Financial Surveillance Powers

KuCoinFlash

Release Time: 01/14/2026 04:01:04

Summary

Galaxy Research warns that the draft Clarity Act, currently under review by the Senate Banking Committee, could enhance the Treasury's financial surveillance under digital asset regulations. The bill includes CFT-related provisions that would allow transaction freezes without court orders and expand powers targeting DeFi platforms. Alex Thorn, director of research at Galaxy Digital, stated that these changes could represent the largest expansion of financial surveillance since the Patriot Act.

BlockBeats news: On January 14, according to Decrypt, Galaxy Research issued a warning that the draft of the "Crypto Market Structure Act" (Clarity Act) currently under review by the Senate Banking Committee would significantly expand the U.S. Treasury's financial surveillance powers. The draft includes provisions allowing the freezing of transactions without a court order, as well as extended "special measures" authority targeting decentralized finance front-ends.

Alex Thorn, head of research at Galaxy Digital, stated that if these measures become law, they would represent "the largest single expansion of financial surveillance powers since the Patriot Act of 2001."

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