U.S. Treasury Urges Congress to Pass "Hold Law" to Authorize Crypto Platforms to Freeze Suspicious Funds

Odaily News The U.S. Treasury Department, in a report submitted to Congress regarding the GENIUS Act, suggested that Congress should consider enacting a "hold law" targeting digital assets. This proposal aims to provide a legal safe harbor for crypto platforms, allowing them to temporarily and voluntarily freeze digital assets suspected of illegal activities during investigations. Ari Redbord, Head of Policy at TRM Labs, stated that this bill would buy time for law enforcement to address the high-speed nature of blockchain transactions. While the Bank Secrecy Act protects institutions that file suspicious activity reports, there is currently a lack of clear statutory provisions authorizing platforms to freeze funds without a court order. The report noted that this move would enhance public-private sector cooperation in combating crypto fraud and money laundering.