Galaxy Signals Major Surveillance Risks in Senate Crypto Market Bill

Galaxy Digital has warned that a new crypto bill from the US Senate Banking Committee could give the Treasury Department huge new powers to monitor and control digital assets.

In a note, Galaxy said the bill represents the largest expansion of financial oversight since the U.S. Patriot Act. Unlike the House-passed CLARITY Act, the Senate bill includes stricter rules on illicit financing, including “special measures” authority.

This would allow Treasury to label certain countries, banks or types of crypto transactions as high risk of money laundering and restrict them, similar to the tools used under the Patriot Act. The bill also allows for a “temporary suspension” of transactions, allowing agencies to direct stablecoin issuers and crypto platforms to freeze transfers for up to 30 days or more without a court order.

⚖️ ALERT: Galaxy Research has warned that the new Senate crypto bill would give the government the broadest powers to oversee illicit financing since the USA PATRIOT Act. The project would create tools allowing the Treasury to impose special measures on digital assets and freeze transactions… pic.twitter.com/StXLdgcq2B

– Unchained (@Unchained_pod) January 14, 2026

Senate Crypto Bill Could Strengthen Oversight

Another part of the project subjects crypto front-ends, like DeFi websites or apps, to sanctions and anti-money laundering (AML) rules. The Treasury could require these platforms to verify wallets, block sanctioned activities and manage risks. The bill also targets “DeFi in name only” projects, imposing Bank Secrecy Act rules on anyone with actual control over them.

Galaxy said the powers would be the largest expansion of financial oversight since the Patriot Act. The Crypto Council for Innovation (CCI) welcomed the updated draft, saying it shows progress on important crypto policy. The ICC is also reviewing the bill and talking with lawmakers, emphasizing that any final rule should protect consumer choice and encourage fair competition.

The draft highlights the balance the government is trying to strike between regulating crypto and enabling innovation, and any laws passed could significantly change how digital assets are policed ​​in the United States.

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