Part 11/15:
Exothalis pointed out that non-financial individuals involved in peer-to-peer transactions would face complex compliance obligations. For example, a person transferring $10,000 worth of bitcoin to a friend could unintentionally commit a felony if they fail to verify the recipient’s SSN or report the transfer, even if the activity is legitimate.
The Broader Implications for Innovation and Privacy
Both experts expressed deep concern over how these provisions threaten the foundational principles of privacy, autonomy, and innovation. The bill's approach risks turning cryptocurrency transactions into surveillance opportunities for the government, effectively centralizing control over a technology designed to be decentralized and privacy-preserving.