U.S. Treasury Proposes 'Hold Law' for Digital Assets

The U.S. Treasury Department has recommended that Congress consider implementing a 'hold law' for digital assets, according to a report submitted to Congress under the GENIUS Act. According to Odaily, 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 the law would give law enforcement more time to address the rapid nature of blockchain transactions. While the Bank Secrecy Act protects institutions that file suspicious activity reports, there is currently no clear statutory provision allowing platforms to freeze funds without a court order. The report highlights that this measure would enhance public-private sector collaboration in combating crypto fraud and money laundering.