The U.S. Treasury Department is urging Congress to pass a "holding law" to authorize crypto platforms to freeze suspicious funds.

The U.S. Treasury Department, in its GENIUS Act report submitted to Congress, recommended that Congress consider enacting a "hold law" for digital assets. This proposal aims to provide a legal safe haven for crypto platforms, allowing them to temporarily and voluntarily freeze digital assets suspected of being involved in illicit activities during investigations. Ari Redbord, policy director at TRM Labs, stated that the bill would buy law enforcement time to address the high-speed nature of blockchain transactions. While the Bank Secrecy Act protects institutions that submit suspicious activity reports, there is currently a lack of explicit legal provisions authorizing platforms to freeze funds without a court order. The report notes that this move would strengthen public-private partnerships in combating crypto fraud and money laundering.