Honestly, it's baffling to see some news articles that are posting that the United States treasury has the capability to prohibit any sort of Cryptocurrency transaction or freeze Crypto wallet accounts. It is simply impossible for the U.S treasury to yield that kind of control over any Cryptocurrency.

What Can They Do?

The most they can do is provide a legal notice to a bank or Cryptocurrency exchanged (Based in the U.S) to freeze your assets, if they think you are involved in illegal activities such as money laundering, scamming or ransomware attacks. The government cannot do jackshit if you have your Crypto in a decentralized wallet.

Moreover, there are around 27 Million Americans, or 8.3% of the population that own Cryptocurrencies. It is just unfeasible for the government to individually target all of their bank accounts or assets if they are going for Crypto as a whole, which is barely mentioned in the provision.

The Prohibition Does Not Target Crypto

No Mention of Cryptocurrencies

The main prohibition is more likely to be focused on Banks rather than Cryptocurrencies as Criminal transactions are only 0.15% of all Crypto transactions. The Feds aren't dumb, they know this.

They're already spying on you

For the apparent clause that allows spying.... Well you're late. The U.S government has been spying on you for as long as you've been existing and this bill is going to be very insignificant in that regard. Moreover, anyone can "spy" on you already through blockchain explorers, but the thing that matters is, they don't know who is behind each wallet.

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TLDR: The clause of the bill that people are freaking out over is largely irrelevant towards Cryptocurrencies, and Crypto holders who don't hold their wealth in an exchange are still unaffected. So, should you be concerned about this bill? Absolutely, it is still a clear overreach and a few people can still be affected. But should you panic like all media is telling you to? Absolutely not. No government can freeze or control Crypto transactions.