Could the US start imposing sanctions against crypto exchanges?

A new bill introduced in the United States gives Biden broad powers to block access to digital assets.

On June 5, Senator Mark Warner’s policy amendment to the Intelligence Authorization Act for Fiscal Year 2025 was published on

What do we know about the new bill?

The law, known as S.4443was introduced to the US Senate on June 3. It provides for the approval of funding for the US intelligence community and the granting of legal powers.

The new proposal has already caused great concern within the crypto community. Under the final amendment to the bill, the president can block transactions between American individuals and foreign organizations that support terrorist organizations. For example, prohibiting any type of transaction between any person subject to US jurisdiction and a foreign crypto intermediary.

What the cryptocurrency community is saying

Financial lawyer Scott Johnsson criticized the law because of its broad scope. He said S.4443 means the president can impose a user-level ban on any protocol or smart contract.

Johnsson believes the law could limit users to KYC-compliant blockchains. He sees this as an attempt to strengthen control over digital assets under the guise of fighting terrorism, since Warner’s amendments are borrowed from the Terrorism Financing Prevention Act.

Current Regulation of Crypto Exchanges in the United States

In March 2013, the Financial Crimes Enforcement Network (FinCEN) classified crypto exchanges as money services businesses, which required the collection of customer identifying information. Since then, US crypto platforms have been required to verify the identity of their users before they are given access to trading.

How crypto exchanges work in the USA

To register a crypto exchange in America, several conditions must be met, and the issued token can subsequently be considered a security or currency. Legal regulation of crypto in the United States depends on federal and individual state laws.

Additionally, U.S. citizens or residents should use domestic exchanges under FinCEN regulations. Attempting to use international platforms may result in a trading or registration ban if a person is found to be using a US IP address.

Given these regulations and the security risks associated with foreign exchange, US investors are advised to transact cryptocurrencies through domestic platforms.

Regulatory acts

Digital currency businesses must comply with the Bank Secrecy Act (BSA). Depending on their activities, they must register with the relevant federal agencies, such as FinCEN, the Securities and Exchange Commission (SECOND), or the Commodity Futures Trading Commission (CFTC).

To ensure compliance, these organizations must conduct in-depth risk assessments to assess their exposure to money laundering and develop LBC programs tailored to their risk profiles. These programs must include policies, procedures, comprehensive controls, independent compliance testing, dedicated compliance personnel and ongoing training.

The United States has become very concerned about the crypto industry

The intersection of digital assets and politics could significantly influence the 2024 US presidential election. As digital assets gain popularity, candidates’ positions on crypto regulation and blockchain innovation could probably influence voters.

The impact of crypto policy on the US presidential election will be more critical than ever. This is the first election in which major candidates are actively discussing cryptocurrency, despite its minor role in previous campaigns when Andrew Yang ran for office.

For example, former US President Donald Trump started to accept crypto donations last month for his campaign, which gave crypto industry advocates, including Messari CEO Ryan Selkis, a platform to express their beliefs.

Source: Donald Trump’s website

At the same time, the current American president Joe Bidenwhose administration was previously not loyal to digital assets, suddenly amended its cryptocurrency policy.

The president’s stance changed after Trump’s election campaign presented cryptocurrencies as positive. Since then, Democratic members of Congress have voted in favor of cryptocurrency, and the presidential campaign is seeking policy guidance by reaching out to industry insiders and cryptocurrency experts.

Will the bill be approved?

Given the upcoming elections, regulation of the cryptocurrency industry is becoming increasingly crucial for the current administration. However, as the crypto community has become an essential part of the voters, it is not profitable to ignore their interests.

The question of exemption from provisions related to crypto exchanges and sanctions remains open. It will likely need further refinement before lawmakers make a final decision.

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