US Congressman Calls for Law Allowing Government to Reverse Cryptocurrency Transactions – Regulating Bitcoin News
A US Congressman has called for a bill that allows the government to identify cryptocurrency users and reverse crypto transactions. “There is a significant, increasing sentiment in Congress that if you participate in an anonymous crypto transaction, you are de facto participating in a criminal conspiracy,” he said.
Rep. Bill Foster emphasizes the need for laws that allow the government to reverse crypto transactions
Illinois MP Bill Foster, who is also co-chair of the Congressional Blockchain Caucus, spoke about regulating cryptocurrencies during an Axios virtual event Tuesday. Regarding the problem of ransomware attacks and the fact that criminals are asking for bitcoin rather than cash, the congressman stressed that “there is a fundamental difference between crypto assets and real assets. That is an important distinction that we must ultimately make in the law. “
Stressing that laws need to be passed so federal courts can identify crypto users and reverse transactions in Bitcoin or other cryptocurrencies, he said:
You may need to go to court to unmask participants.
He discussed the “condition on which we can reclaim cryptocurrencies,” such as ransom money paid to criminals, and noted that this is one of the fundamental decisions that must be made regarding crypto assets.
The Congressman pointed out that the law has to deal with whether cryptocurrencies are “truly anonymous or whether there is a court that you can go to to expose participants”. In addition, “there is a court, a third party that you can turn to to reverse fraudulent or erroneous transactions”.
Foster gave an example. “If someone dragged you into an alley and held a gun to your head and said, get out your cell phone and transfer all of your bitcoins to my wallet. If you are unlucky or you can go to court, have the participant exposed. ”In addition,“ the court – if it decides that the transaction was fraudulent, criminal or fake … its access to a very closely guarded key, a cryptographic one Use the back door in a sense that enables them to cryptographically reverse transactions on a blockchain. “
Legislators claim such tools are necessary for the government to protect itself, people and businesses from ransomware attacks such as those hit by Colonial Pipeline.
Rep. Foster said:
I just said three things there that will drive the crypto purists berserk, like the trusted third party and so on.
He believes that “when most people have a large portion of their net worth tied up in crypto assets, they want that security blanket from a trusted third party who can solve the problem if they are hacked, if they are stolen, or even just one wrong assumption.”
Foster went on to say that cryptocurrencies must comply with federal regulations and laws in order for them to ever become a mainstream instrument for conducting transactions. When asked how the US would regulate cryptocurrencies in view of their global and borderless character, he replied: “We have to create a law here between the legal and illegal regimes” and stated:
There is a significant, increasing sentiment in Congress that if you participate in an anonymous crypto transaction, you are de facto participating in a criminal conspiracy.
Many people used social media to ridicule the Congressman and his attempt to reverse Bitcoin transactions, stating that he did not understand how Bitcoin works. Some responded to Foster’s criminal allegation, stating that they were “not de facto criminals.”
What do you think of Rep. Foster, who is calling for legislation that gives the government the power to reverse cryptocurrency transactions? Let us know in the comment section below.
Photo credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer of liability: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement for any product, service, or company. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
source https://bidsfor.me/us-congressman-calls-for-law-allowing-government-to-reverse-cryptocurrency-transactions-regulating-bitcoin-news/
Comments
Post a Comment