• The US House of Representatives held a hearing to question the CEO of TikTok over concerns about user data privacy.
• The RESTRICT Act, recently introduced in the US Senate, could be used to ban TikTok and other apps with ties to foreign adversaries.
• A potential ban on TikTok may have implications for the cryptocurrency space, such as limiting access to crypto-related content and limiting US citizens’ ability to transact with sanctioned entities.
TikTok Hearing Sparks Concerns Over Crypto Industry
On March 23, representatives from the United States House of Representatives held a hearing with the CEO of TikTok, Shou Chew, regarding user data privacy concerns. This has led many to speculate that a ban on the platform could soon be imposed, exemplified in the Restricting the Emergence of Security Threats that Risk Information and Communications Technology (RESTRICT) Act recently introduced in the United States Senate.
Effects on Crypto Space Cannot Be Ignored
The think tank Coin Center believes that this legislation could also have implications for cryptocurrency space due to its similarities with International Emergency Economic Powers Act which allows Treasury’s Office of Foreign Assets Control (OFAC) to prohibit US citizens from transacting with sanctioned entities. Austin Federa from Solana Foundation expressed concern about this rhetoric saying it should worry everyone in crypto in the US because it could mean having difficulty publishing and distributing software some politicians don’t like.
CryptoWendyO Believes Ban is Aimed at Crypto
Bitcoin YouTuber CryptoWendyO also thinks this bill is not about TikTok but about going after cryptocurrency space itself saying “banning them is goal”. She believes that if passed this act would limit access to crypto-related content as well as limit US citizens’ ability to transact with sanctioned entities potentially leading to a huge blow for cryptocurrencies in general.
Implications For Cryptocurrency
A potential ban on TikTok may have significant implications for both individuals and organizations involved in cryptocurrency transactions or activities related thereto. Individuals may see their access limited when it comes accessing crypto-related content while organizations may find themselves unable or restricted from transacting with certain entities if they are deemed ‘foreign adversaries’.
What Does This Mean For Crypto?
As legislators continue discussions around banning TikTok and similar apps over security threats posed by foreign adversaries, there are concerns amongst those involved in cryptocurrency transactions or activities related thereto about how this will affect them directly or indirectly. It remains unclear what effects any potential bans would have on cryptocurrencies but it is certainly something worth paying attention given its potential ramifications on an already fragile industry.