The U.S. Treasury is considering the development of a new secondary sanctions tool to enhance its targeting capabilities. This tool would address the challenges posed by technological advancements that have reduced the effectiveness of traditional payment-related sanctions against virtual currencies. Specifically, the use of Tether (USDT) stablecoin in transactions has raised concerns about potential violations of sanctions against Russia. However, it is not yet clear if the U.S. Treasury plans to pursue expanded sanctions authority to target Garantex’s counterparties.
The proposed secondary sanctions tool is aimed at adapting to the evolving landscape of financial transactions and ensuring that the Treasury can effectively enforce sanctions in the face of technological changes. This development underscores the need for proactive measures to address potential sanctions breaches associated with virtual currencies and emerging payment methods.