US Senator Mark Warner has introduced legislative elements into an anti-terrorism financing bill, granting the US President comprehensive authority to strictly scrutinize digital assets. This move has raised concerns among industry professionals, who fear the law's scope is too broad.

The law defines 'digital assets' as any digital representation of value recorded on a cryptographically protected distributed ledger. Under this definition, the President can prevent Americans from transacting with foreign entities deemed to be supporting terrorist organizations. This includes imposing strict restrictions on foreign financial institutions that facilitate such transactions if found to be opening accounts in the United States.

Scott Johnsson, a figure in the digital asset field, has criticized the law's scope as being too broad. He stated, 'It's hard to see this as anything other than the President's power to ban user-level access to any agreement/smart contract, if the Treasury Secretary believes these agreements/smart contracts are controlled, operated, or provided by foreign sanction violators.' Johnsson's concerns are shared by many in the industry, who fear the law's broad definition of digital assets will lead to unintended consequences.

The law's impact on the digital asset industry is significant. It grants the President the power to broadly prohibit access to digital assets, which could have far-reaching consequences for the industry. The law's definition of digital assets is also broad, encompassing any digital representation of value recorded on a cryptographically protected distributed ledger. This could include a wide range of digital assets, from cryptocurrencies to non-fungible tokens.

In conclusion, the introduction of this anti-terrorism financing bill has raised concerns among industry professionals. The law's broad definition of digital assets and the President's comprehensive authority to scrutinize them have sparked fears of unintended consequences. The industry is waiting to see how the law will be implemented and what impact it will have on the digital asset market.