US Lawmakers Draft Bill 'Protecting' Cryptocurrencies From Government Interference

Tyler Durden's picture

Several members of the US Congress are drafting legislation that is intended to recognize certain digital currencies and 'protect' them against interference from the federal government. The question is - does the 'protection'

CoinTelegraph reports that the bill, which will provide protection to cryptocurrencies that comply with certain minimum requirements to prevent them from being used by those engaged in illegal business practices like drug traffickers and terrorists, is expected to be filed in September 2017, according to DailyCaller.

Based on a reliable source, at least one Republican senator and two Republican congressmen are working on the draft legislation.

The legislators, however, have requested that should not be identified due to the sensitivity of the issue and the complexity of the proposed solution.

A source close to the effort told TheDC,

“the center piece of the plan is to mainstream digital currency so it can be treated just like the American dollar.

 

First, there is a new entity that is considering issuing a brand new digital currency that is compliant with anti-money laundering laws unlike any other in circulation.”

Although cash has some of the same problems being used to pay for illegal activities, the perception that digital currencies are being used for illegal activities is seen as the primary roadblock to wholesale acceptance by the American public.

The source told TheDC the new model is going to follow federal laws that prevent money laundering. This is a break through and could lead to the use of digital currencies replacing the dollar for many transactions.  The legislation is expected to be introduced in early September.

The source asked the members of Congress involved in drafting the bill not be identified yet, explaining, “this is a very complicated issue and staff are working through some issues that have in the past stopped alternative currencies from being launched.”

They continued that:

...the law needs to be changed to protect digital currencies from federal government harassment to make sure that a complaint currency can be backed by value, the currency cannot be treated like a security or investment, and that transfers are protected against taxation.

 

The bottom line is that Congress needs to remove all the obstacles to a vibrant digital currency that has voluntarily taken the initiative to keep the bad guys from using it.”

What is perhaps most ironic here is that government lawmakers are attempting to codify rules to stop government lawmakers interfering with the free and open exchange of a decentralized currency... by setting rules that potentially interfere with the free exchange of said currency.

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devo's picture

It's "better" because you own it and want to flip it. No other reason. If it's truly better you don't need to convince anyone; it convinces people itself.

tmosley's picture

Hahaha, ah, the psychic rebuttal.

Truly a reasoned and logical response, and in no way indicates a demented mind torn asunder by cognitive dissonance. 

devo's picture

Ad hominem from a bitcoin holder whining about logic and reason. You can't make this stuff up!

tmosley's picture

You got nothing. I think you know it.

devo's picture

I know you own bitcoin, want to flip it, and will soon "got nothing", and I think you know it. So stop the projecting. You're owned and butthurt over it.

tmosley's picture

You're exhibiting psychic powers again.

Need to hide those power levels, Chao-tzu.

Golden Phoenix's picture

The score is:

Devo 0

Bitcoin 51,000%

in4mayshun's picture

Not cognitive dissonance, simple logic. Gold has remained the chief store of value because of its simplicity. Golds value is inherent because it is rare and takes significant effort to obtain. Bitcoin is (temporarily) valuable because some people think it is but it has no inherent or even utilitarian value. The realistic fact is that the Government will either control crypto currencies or they will force a guilty-till-proven-innocent stance on exchanging them. If you're fool enough to think that the big ISP's can't report to the Government the IP addresses of folks who are engaged in exchanging crypto-currencies, then you're dumber than you sound.

Solid Gold Bubble's picture

>Gold has remained the chief store of value because of its simplicity.

 

Gold price in 2011: $1920

Gold price now: $1291.

 

And that's not taking into account 6 years of inflation/QE.

 

Store of value?????

NukeChinaNow's picture

I like what you're saying BUT...if what you say is the case then how come so much crypto gets looted and there's always the hands in the air with the shoulder shrug as no one seems to be able find the thieves? Hmm?

If it can be stolen shouldn't they be able to find the thieves? Bill Clinton is running out of cigars. Myself, I like...nah-ain't telling.

But I digress. Hitlery is still trying to sell her shell ( soul's LONG gone ) for temporary access to gov't wealth-at American's cost.

"For what does it profit a man if he gains the whole World but loses his immortal soul"? Hmm? I guess Al man/bear/pig might be trying to " live large" knowing the evil he does will only profit him so long, as well.

But hey, what do I know?

NukeChinaNow's picture

I'm going to diversify my portfolio of lead, water and food and add chocolate, liquor and cigs...and TP.

I feel remiss for having neglected those till now. Costco here I come!

tmosley's picture

Bidet attachments for your toilet are cheap and negate the need for TP (they are also much, MUCH more sanitary). Get a good one on Amazon for ~$50.

NukeChinaNow's picture

Does this "bidet" give an audible islamic call to prayer when you flush?

Then and ONLY then would I buy anything other than tp.

I bet I could make a few bucks and a bunch of raghead enemies and get me own fatwa if I could make an "islamic flush to prayer", now couldn't I?

I better damned well get credit for it!

F muhammed and allah!

The mormons of the middle east!!!!!

 

 

Golden Phoenix's picture

I guess you'll have to wait until gold is up 51,000%+ plus. Good luck.

jeff montanye's picture

is moore's law inflationary?

somehow i don't think gold and silver mining has a similar dynamic.

devo's picture

Alright, prove it. Even though you can do this to a bitcoin in miliseconds, I'll even give you 24hrs to do it to the gold coin. Subdivide a physical gold coin infinitely for me. Photogrpahic proof will suffice.

tmosley's picture

Take a sheet of gold leaf and cut off as small a bit as you like. You can get it down to thousandths of a gram pretty easily.

And of course, you can always debase it.

devo's picture

A few thousandths of a gram isn't infinity, nor is debasing it.

tmosley's picture

Word games. You can only divide bitcoin to 8 decimals.

And if the system were changed to allow further subdivision, not only would you goldfucks have explicitly been blown out of the water by multi-millionfold gains in bitcoin, but those who were holding said coins get the full benefit, unlike fiat holders who get diluted out.

I'm sure your brain will stop you from being able to understand that, as your ego is at risk.

YOU MIGHT BE WRONG, OMG END OF THE WORLD!

devo's picture

You're oozing butthurt.

tmosley's picture

Indeed you are.

Buy some bitcoin, and maybe that butthurt will go away, maybe even before the next 10 bagger.

NukeChinaNow's picture

And WHAT EXACTLY is THAT supposed to accomplish? Why not take it further and just use fiat as gilding as what you propose is "ridikerus"!

Oyster's picture

Actually, a bitcoin can't be subdivided without limit. A satoshi is the smallest fraction of a bitcoin at 0.00000001. That's one hundred millionth of a single bitcoin. If a bitcoin was priced at $1,000,000 USD a satoshi would be the equivalent of 1 cent.

tmosley's picture

Who do you think they are paying? A volcano?

The dollars don't leave the dollar ecosystem. Even if BTC crashed to zero tomorrow, no dollars would be created nor destroyed.

ET's picture

In a sense, it is like how the banks hoard "excess reserves" so that they can get 0.75% interest from the Fed. They will not loan it out into the overall economy.

The excess reserves have held back to some extent the monetary inflation.

FreeShitter's picture

ET, they dont need crypto  do divert away from gold..thats laughable.

VD's picture

ET: you are correct. Deep State deeply entrenched in this -- the crypto-muppets will get fleeced even more spectacularly than in "markets" when it's all said and done.

 

SAIAN's picture

I don't see this actually for Bitcoin or those already out there but rather a sweetener for another currencies thats gets introduced, lets face it many people won't like a crypto in general to replace cash never mind gold and silver by the wise savers... the hate portrayed by those that do or don't understand it can become so engrained and snowball that there could be major riots if governments don't start talking with one voice of acceptance.

 

Just give this a thought... main advantage for governments is full tax avoidance measures can really be reined in by full transpancy and the daisy chain code of crypto, the internet is a pain in the ass even though a blessing for all governments... there is a lot more control benefits than freedom with crypto no matter how one tries to pull the wool over the eyes on this.

 

Black and Chain of the future... the future false freedom.

VD's picture

gov wants to "help" crypto-fiat like Tulipcoin not get taxed by gov = i've got a nice blockchain bridge for sale.

 

how stupid do you have to be to not see this endgame.

SAIAN's picture

I think you don't get it... the gov wants to get their own coin in as it is great for them, total control and all the bad press to the crypto world will make it fucking difficult in the long run even if the current one is a speculative scam.

 

Yeh, endgame for money as we know it... but the sheep will herd nicely or not is the question for the new system.

VD's picture

the true endgame, after Tulipcoin et al. go to zero, is for the IMF to issue a single global currency with a "this time is different" blockchain as the super-crypto-SDR.

 

you are today simply witnessing the painful crypto-muppet noisey pile-in.

SAIAN's picture

Yeh, I don't reckon the alternates will all go to zero, it is good for laundering... and even government launders... most will though will get smashed when not if the governments decide so... good idea initially but turned to shit when big boys change it to their advantage.

ljag's picture

...."big boys change it"? There is nothing to change. Who do you think started Bitcoin ? It wasn't some guy named satoshi. Bitcoin arrived on the scene because it was time......period.

MaxThrust's picture

"Remember that this is a ploy to divert money from gold, thereby hiding inflation"

I would never had thort of that scenario but you may be correct. As a PM owner I am only concerned with the price I get when one day far into the future I sell or barter some of my PM stash to acquired something I need.

You may be onto something here though.

When one considers the volume of cash that is disapearing into the Cryptocurrency space and may never be seen again, because future transactions will be done with theez Cryptocurrency.

I would consider it 3D chess if the creators of Bitcoin etc are actually TPTB. It certainly would aid in solving their inflation problem.

AtATrESICI's picture

Hope it passes and is done for the right reasons. I am doubtful that the gov will do the right thing. Sorry.

AtATrESICI's picture

At the very least we can make some quick gains from the possible good news.

GIVJetMech's picture

Absolutely not! Digital currencies are too easily tracked. While on one hand this does help curb illegal activities, on the other it will prevent people from stockpiling cash reserves for emergency purposes (or for that matter, anything they WANT to stockpile cash for!). Already we are hearing that in the case of an economic swoon, the government is considering negative interest rates. This is to MAKE people spend or invest their earnings. If you don't, your savings will be TAXED as a penalty. A digital currency will make it even EASIER for the government to keep track of whatever you have in the bank.

Bitcoin - with its anonymous tracking system - is different. You can BET bitcoin will NOT be the choice digital currency of the US Government because they can't track, control or get ANYTHING OUT IF IT! They are trying to make it seem like they are "protecting" digital currencies. While in reality, they are really trying to develop a digital currency they can track, tax and control!

No! No digital currencies.

AtATrESICI's picture

Bitcoin transactions are not anonymous. With databases, smartphone tracking, internet activity tracking, CCTV systems with pattern recognition software, and the alike privacy was out the window 20 years ago. If it ever existed at all.

Blockchain technology not for currency systems has much potential for creating immutable records for the life span of the blockchain system if not co-opted by the Owners and gov friends. When dealing with the Owners and gov friends they are nothing if not consistent in totally fucking up any advantage for those outside their winners circle.

Golden Phoenix's picture

The only Americans funding terrorists and dealing Afghani dope are in Congress.

The Cooler King's picture

Well this oughta give crypto owners more 'faith' now that they know Congress & lawmakers are on their side. (you know, those same lawmakers that passed 'Obamacare' to see what was in it & exempted themselves).

LawsofPhysics's picture

Why would the Federal Government (a.k.a. The Federal Reserve Bank) want to protect cryptocurrencies?!?!?!?

According to all the pro-crypto guys bitcoin doesn't NEED any such protection.

 

"Full Faith and Credit"

same as it ever was motherfuckers.


tmosley's picture

Because they think they can control them.

But they can't.

As usual, they won't realize their mistake until it is ten years too late or so.

LawsofPhysics's picture

LMFAO!!!

What do you buy your bitcoin with?  Dollars?  LMFAO!!!

 

Sure sure...

again, "Full Faith and Credit"

same as it ever was you stupid fuck.

tmosley's picture

Not an argument, stupid fuck.

tmosley's picture

Hahaha, what a loser.

I thought you might have actually had something to say, but I see that you don't.

Buy moar oil! It's running out next Thursday!

LawsofPhysics's picture

with bitcons?  LMFAO!

How is that house full of silver?  I must have taken some of your silver as I have been exchanging bicoin for physical for a while now.

 

You know the drill, BTFD!!!

tmosley's picture

Hahahahahaha, oh, now you're a retroactive bitcoin millionaire!

Talk about a fucking clown. Give it up.