US Lawmakers Draft Bill 'Protecting' Cryptocurrencies From Government Interference

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.

Comments

ET (not verified) Sun, 08/20/2017 - 19:03 Permalink

Remember that this is a ploy to divert money from gold, thereby hiding inflation.This is what they want. You will not see items priced in Bitcoin. Too much volatility to post prices for real goods and services.

TeamDepends tmosley Sun, 08/20/2017 - 20:05 Permalink

Damn, you crypto haters need to STFU and do some research.  We were ignorant like you, but then we looked into it.  Cryptos were born out of necessity, because faith in gov fiat is about to evaporate.  We, like you, wish that the central bankers were not evil scumbags and their money could be trusted.  But that didn't happen, did it?  And if you think you can use PMs when TSHTF, remind yourself how few of your countrymen have any with which to trade.  Cryptos are not some magic panacea, but they are definitely here to stay.  When Bitcoin hits $100K, and it will, will you still be in denial?

In reply to by tmosley

NukeChinaNow e_goldstein Sun, 08/20/2017 - 21:10 Permalink

Please tell me when the power goes out what your $100,000 bitcoin will do.I didn't say he wasn't stocked up. I SIMPLY ASKED WHAT WILL IT DO IF YOU CAN'T GET TO IT?No one is answering my question. It's a simple one. I'm not trying to argue. I WANT A FUCKING ANSWER TO THAT QUESTION.That's all. I'd like to know, so shoot me or sue me but SOMEBODY must have thought about THAT.

In reply to by e_goldstein

TheReplacement PrezTrump Sun, 08/20/2017 - 23:02 Permalink

You morons, yes you PT, just cannot understand that not everything in the world is a binary choice.  If you think you can survive on bitcoin alone and that guns are not going to do any good then you deserve to be eaten by the biker gang before your chickens.  Oh but you are the imbecilic type to not have chickens because biker gangs will come and take them from you.  FFS, what is wrong with you all?Edit:  Yes, I downvoted you.  If I could do it 1000 times I would. 

In reply to by PrezTrump

NukeChinaNow PrezTrump Mon, 08/21/2017 - 20:02 Permalink

Well you certainly put me in my place, ya dumb fuck.  /s.  Thank you for that most enlightening reply to my question. Why do moronslike you believe your typed dung is of value to anyone but your little twinkle-toed ass is beyond me.And yeah, my weaponry and ability to implement tactical responses are more than sufficient for all but other Mil/LE Depts. GFY. 

In reply to by PrezTrump

Dennisen NukeChinaNow Mon, 08/21/2017 - 04:12 Permalink

Allow me to add that in that case, there will be no operational ATMs or banking, nor cash registers at stores and supermarkets, nor heating or air conditioning, nor lights (without batteries). Bitcoin, the internet, and most comforts of modern civilized society will be unavailable to ever-angry and frustrated people bent on getting what they want, however they can. Long before that possibility happens, you'd better have a plan in case it does...cash, portable PMs, your Bitcoin offline on a Ledger Nano S, and the family in tow to another place that isn't in a blackout.

In reply to by NukeChinaNow

NukeChinaNow Dennisen Tue, 08/22/2017 - 21:04 Permalink

God, this is getting tiresome. I'm NOT ASKING FOR SITREPS AND POSSIBILITIES! I MERELY ASKED what was the default position for those who held 'wealth' in "electronic accessibility only" storage...and what THEIR 'STRATEGERY' WAS/IS ( thanks to GDUB for strategery ).I do NOT GIVE A FUCK about the chumps that voice comments that think "well IF THAT has happened WE'RE ALL FUCKED"...blah blah blah!I do not need to hear ANYTHING...ANYTHING!!!!!!... OTHER THAN...WHAT!? do those of us that hold cryptos as a form of 'wealth' expect to do if they find themselves WITHOUT THE ABILITY TO ACCESS IT!? Good fucking GOD how difficult it is to get an honest answer! I did not wish to hear bleating and blather about " that's not all they have...if that's the scenario we're all fucked...the power does not remain off indefinitely...I have food and water...blah blah blah!!!!ANSWER THE FUCKING QUESTION!What good is $100,000 of bitcoin if you can't get to it because of no power?My question is akin to making an access road to your homestead when a flood takes out your normal route, ok?Does THAT analogy help?! For instance, if the power is out over a large swath of YOUR living area ( NOT THE WHOLE OF THE EARTH...Nimrods ) and you need to get at your crypto, do you have contigency plans with trusted people to get to it by reaching 'em say, by Ham radio or some other means?I'm not trying to be a provocateur. I'm trying to identify problems and find possible solutions-in case I FIND MYSELF THERE.I do ever so hope there's something in THIS POST that conveys I REALLY AM looking for answers to my original question and not trying to jab a pointy ( I TOLD YOU SO ) stick into crypto 'wealth' holder's eyes. TYVM

In reply to by Dennisen

TheReplacement tmosley Sun, 08/20/2017 - 23:04 Permalink

There never has been a carrington event, ever.  Pull ALL of your eggs in one basket.  It's a binary world.  Nothing else will ever have value besides cryptos.  Duh.BTW, just WTF are you gonna trade your cryptos for if they are the only thing with value?I am so sick of both sides of this argument.  It is like watching retards trying to jack off a dead tree stump.

In reply to by tmosley

zebra77a Raffie Sun, 08/20/2017 - 22:01 Permalink

The biggest driving force of crypto IS the central banks themselves who meet quietly in Basel Switzerland - and have watered down all Western Gov fiat  hugely!.. As G8 planners they have devalued all western government fiat's into near oblivion while local, municipal, provincial, and federal governments have tag teamed the public with ever increasing taxation - that now never stops increasing..Because of this ever increasing parasitic feeding upon the public it left them no choice but to move (out!) of fiat into ANYTHING that is immune to manipulation and taxation. In otherwords Bitcoin is  extremely valuable because it mathmatically extremely difficult for anyone to dilute even for the near unlimited resources of the central banks..Crypto is when combined with the blockchain mathmatically difficult to track, tax, and most importantly dilute! Consider..Houses are hard to hide from the government and when they felt like it they just showed up and taxed or took your house.. Consider Vancouver..Gold was heavily diluted 350:1 by paper certificates..Bitcoin never has to be useful to the public as a currency to be highly valuable.. Like diamonds they are rarely used as currency but their value IS its immunity to manipulation..

In reply to by Raffie

Solid Gold Bubble zebra77a Mon, 08/21/2017 - 03:02 Permalink

Well said.You've outlined how Bitcoin serves as "digital gold" - more practical as a store of value than a medium of exchange. I think this is why slow transaction speeds and high fees won't matter too much in the future - Bitcoin will be for hording and infrequent high value exchanges - much how governments and institutions currently trade real physical gold. If you're making a $10m business deal or buying a $700k house you don't need the transaction to be fast - you just need it to be secure. The role of medium of exchange - $10 grocery store PoS transactions which need to be fast - will be assumed by "digital silver". It remains to be seen which coin(s) that will be. It was looking like Litecoin at one point but since the Bitcoin segwit announcement and subsequent price drop, that is looking less certain. Personally I am loading the boat with Bitcoin, Bitcoin Cash and Monero. Nice pop in ETH today - would really like to see it top $400 again soon.

In reply to by zebra77a

Tubs Solid Gold Bubble Mon, 08/21/2017 - 05:25 Permalink

The digital version of anything has inherent benefits over the real deal, doesnt mean it is worth anything. Comparing bitcoin to digital gold is like comparing a digital house to a real house. You dont have to maintain it, it can be sold online in real time anonymously etc etc . But at the end of the day its utility value is zero cause it is only worth the same as what some late in the game Millenial geek is willing to pay for it.After all, it is DIGITAL GOLD!!! Bitcoin has alot more in common with Baseless Fiat than Gold.Keep spending dudes and pump up that bubble. Bitcoin is going to $20,000! That is, until Central Banks who designed it decide to pop it once and for all and replace it with their own version.

In reply to by Solid Gold Bubble

ET (not verified) ET (not verified) Sun, 08/20/2017 - 19:06 Permalink

Bitcoin has had clever marketing over the years. The use of gold imagery to equate Bitcoin with gold and calling it a coin when it is not are such methods to deceive.Truthful advertising would call it a blockchain and prone to electronic intercept despite its crypto name.

In reply to by ET (not verified)

ET (not verified) ET (not verified) Mon, 08/21/2017 - 00:43 Permalink

What a lot of financial commentators are missing here are the currency exchange rates.Look at how many yuan or euros or dollars it takes to buy a Bitcoin.The exchange rates for yuan and dollars or euros and dollars in the Bitcoin market are the same in the currency exchange markets.These cryptos are holding back inflation of consumer goods and services, gold, silver, and other asset classes worldwide, not just in the US.

In reply to by ET (not verified)

jeff montanye tmosley Mon, 08/21/2017 - 01:53 Permalink

you are right, downvotes to the contrary.  but speaking of emotions and, possibly, idiocy --the wild card in all this is the velocity of money.  while mining gold or bit coins takes monumental effort, producing currency some effort, given the infrastructure is in place, and digital currency (including from fractional reserve banking) nearly no effort at all, changing the velocity of money is like changing your mind: doesn't take as long as changing your shoes, in many cases.it is also about as far from official hands as the money supply is close.p.s. has zerohedge (or the nsa) thought of marketing the posts and/or comments, to order, after the fact?  (or have you thrown it all away?)  i would pay (something) for mine and, depending on the price, for others here as well.  hey, digital currency takes nearly no effort at all.and that's money.

In reply to by tmosley