US Treasury Department: Economic sanctions are a powerful tool for maintaining US strength, digital assets weaken the impact of sanctions.

A sanctions review report from the U.S. Treasury Department on the 18th stated that "digital assets and payment systems could undermine the effectiveness of our sanctions" if not controlled. The report recommended that the government take more measures to develop infrastructure and policies related to digital assets.

The U.S. Treasury Department's sanctions review report on the 18th stated that if left unchecked, "digital assets and payment systems could undermine the effectiveness of our sanctions," and recommended that the government take more measures to develop infrastructure and policies related to digital assets.

Treasury Secretary Yellen pledged a comprehensive review of sanctions, led by Deputy Secretary Adeyemo. Adeyemo mentioned:

Sanctions are a fundamentally important tool for promoting national security interests, and the Treasury's sanctions review shows that this powerful tool continues to be effective but also faces new challenges. "We are committed to working with partners and allies to modernize and strengthen this critical tool."

The U.S. Treasury Department stated that the use of digital assets hinders the enforcement of economic sanctions but also balances the funding of legitimate humanitarian organizations. Therefore, there is a need to enhance communication between it and the crypto industry, financial institutions, and other entities to improve current policies.

As outlined in this sanctions review report, the Treasury Department recommends that the government adopt a structured policy framework and coordinate with allies and partners where possible to mitigate unforeseen economic, political, and humanitarian impacts, and that "it (sanctions) should be modernized to address digital asset challenges with the right expertise, technology, and staff."

The U.S. Treasury Department has been taking sanction measures, from embargoes to combatting ransomware attacks. In May, Russian hackers DarkSide attacked the largest U.S. oil transportation company, Colonial Pipeline. Last month, the Treasury Department announced sanctions on Czech and Russian crypto exchange Suex OTC for allegedly facilitating ransomware payments.

In this sanctions review report, the Treasury Department clearly outlines six guiding principles:

1. Adopt a structured policy framework that links sanctions to specific policy objectives.
2. Coordinate multilaterally as much as possible.
3. Adjust sanctions to mitigate unforeseen economic, political, and humanitarian impacts.
4. Ensure sanctions are understandable, enforceable, and reversible where possible.
5. Invest in modernizing the Treasury's sanctions technology, workforce, and infrastructure. Ensure national security and diplomatic policy and protect the integrity of the United States.

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