A new legislation proposed in Texas called Restricting the Emergence of Security Threats that Risk Information and Communications Technology Act has generated a lot of controversies after it leaked to the public. Known in its short form as the RESTRICT Act, some of the content of this proposal has rattled many Americans who believe it is the government's plot to limit freedom in the US. This act has been forwarded to the US Congress, raising eyebrows among citizens, especially those who interact with crypto
From a protagonist's view, the RESTRICT Act will aid the US government in forcing the sale of foreign apps to US companies. With the recent Tiktok congressional hearing, passing the RESTRICT Act could allow the US government to force the sale of TikTok in the country. However, the act has its negative attributes, which many are pointing out. When this act is passed, using any app banned in the United States with a VPN can land you in jail and a fine of up to $250,000.
The impact of the RESTRICT Act might be worse for the crypto industry as it could lead to a massive crypto crash if approved. With this act, the government could monitor and control what is happening in the crypto industry. This would have a tremendous negative effect on Bitcoin prices and, subsequently, the price of other cryptocurrencies.
Right now, the bill does not dictate apps banned in the United States, but there could be more to the act. This act could prohibit much software affiliated with crypto firms. Apart from adverse effects, the approval of this act will give the US government massive power to crack down on any application they feel is a national security threat. Apps like TikTok already have a high chance of being banned from the United States once this act is approved. Also, crypto applications such as that Binance might be in danger.
Citizens' Reaction to the Proposed Act
The reactions of citizens in the United States have been largely negative. According to many on Twitter, they would likely move away from the US if the bill is passed. Apparently, the bill was made to look like it was only banning TikTok from the US. But further probing from several people showed that the bill offered much more than just banning Tiktok.
Tiktok in itself isn't especially friendly to cryptocurrencies. Early in July 2021, the social platform banned users from promoting cryptocurrencies and other financial products.
A user who has read the proposed bill said, "This is bad. Read the bill yesterday. Pretty scary. People think it's just about banning TikTok."
Another sarcastically said that even if the US congress passes the bill, the jail in the United States will not be enough for those who would break the law. "Lmao, there aren't anywhere near enough jail cells in the US to accommodate the amount of people who use VPNs. So sick and tired of this power of control bs by our own Government. It's going to start a war someday between civilians and the Government if they keep it up," Altcoin Radar said on Twitter.
The new bill is in the early stage of approval and would have to pass through several stages to get approved by congress.