US Congress: Members plan to set regulatory control over Bitcoin

8 years ago - Published in Finance, Fintech Land, Technical Analysis

Members of the U.S. Congress are drafting legislation that would protect certain forms of cryptocurrency from being used for illegal activities while helping cultivate mainstream adoption. Reports indicate that at least one Republican senator and two Republican congressmen are working on the bill.

In a new podcast launched in the past week by Rep. Pat Tiberi, chair of the House Joint Economic Committee, Congressional Blockchain Caucus co-chair David Schweikert disclosed that the group is working with institutions like the Massachusetts Institute of Technology (MIT) and the National Institute of Standards and Technology (NIST) to explore possible standards approaches.

According to the Cointelegraph, the bill is aimed at preventing cryptocurrency from being considered as “a form of security or an investment,” from being taxed, and from federal government interference.

Potential interference has posed some issues in the past; in May 2017 the Combating Money Laundering, Terrorist Financing, and Counterfeiting Act of 2017 attempted to force cryptocurrency users who had more than $10,000 on their person to disclose it when going through U.S. customs. This posed a problem because cryptocurrencies like Bitcoin are always considered to be “on one’s person” since it’s all online.

The Congressional Blockchain Caucus was launched in September 2016 to advance the mainstream adoption of the Blockchain technology in the US. The caucus was launched by a group of lawmakers led by Congressmen Jared Polis and Mick Mulvaney.

The launching of the caucus coincided with the inauguration of the DC Blockchain Center, which is an information center for policymakers. The center was founded by the trade association Chamber of Digital Commerce and the technology incubator 1776 to serve as a platform for the public and private sectors to collaborate on possible Blockchain applications.

Bitcoin, which represents the leading cryptocurrency, has already reported a rise of over 300% in 2017. Only a month ago, Bitcoin was worth $2,000, and now it’s doubled in value. It hit a record high last week at $4,500, and has decreased slightly since then, sitting at $4,276 today.