In brief
- Galaxy Research says the Senate Banking draft embeds sweeping new illicit finance powers for the Treasury.
- The proposal includes transaction holds without court orders and expanded “special measure” authority.
- Industry voices warn unresolved gaps around privacy and risk still constrain adoption.
Galaxy Research warned that a draft crypto market-structure bill circulating in the Senate Banking Committee would significantly expand U.S. financial surveillance powers, arguing in a note that new Treasury authorities targeting decentralized finance frontends and transaction freezes could represent the largest such expansion since 2001.
The analysis focuses on certain provisions from the draft that would grant the U.S. Treasury…
Jan 14 2026
