Treasury Department's regulatory expansion is gaining momentum in Washington. According to Galaxy Digital's latest analysis, the Senate's CLARITY Act draft proposal would grant Treasury substantially expanded financial surveillance capabilities—most notably including the power to temporarily freeze transactions without requiring prior court authorization.

This shift marks a significant escalation in government oversight authority over financial systems. The ability to execute transaction freezes without judicial review represents a departure from traditional checks-and-balances procedures, raising important questions about due process and regulatory scope in digital asset markets.

For market participants and institutional investors monitoring policy developments, this draft signals an intensifying regulatory environment that could reshape compliance requirements and operational frameworks across the sector.