TRM Labs reveals Treasury’s aim to impose sanctions on defi through recent endeavors
The U.S. Treasury is expected to reinforce its strategy of sanctioning decentralized finance in 2024, as indicated by TRM Labs. TRM Labs recently published a blog post stating that the crypto market will likely witness new developments in this area as the Biden administration urges Congress to consider significant updates to the Treasury’s sanctions authority.
In late November 2023, crypto.news reported that the Treasury is seeking to expand its regulatory power by introducing a “secondary sanctions regime.” These sanctions would allow the government to control a company or individual within the U.S. financial system, as the crypto market enables any firm to conduct business with a sanctioned entity, according to U.S. foreign trade representative Wally Adeyemo.
TRM Labs analysts believe that the Treasury’s recent efforts could establish a precedent for the entire crypto industry, as the regulator aims to target specific blockchain nodes or networks, rather than requiring them to be owned by a designated person.
