It does set a precedent to not only freeze but then permanently seize the funds belonging to other countries and their citizens because of policy disagreements between our government and theirs, especially with respect to their actions towards a third, non-treaty ally, country. We can and will do it — it seems inevitable at this point — but I do think this will only accelerate de-dollarization and the rise of BRICS. Foreigners historically trusted the US financial system as the safest place to keep their assets but if we unilaterally take their money, they will look for and eventually find alternatives, and that will be to our long-term economic detriment. That’s my opinion, anyway.