U.S. Congress Drafting Legislation to Protect Cryptocurrencies from Government Interference

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According to the Daily Caller, at least three members of the U.S. Congress are currently working on legislation that aims to protect certain cryptocurrencies against government interference.

At a time in which Bitcoin Cash recently hit a new all-time high of nearly $1,000, and Bitcoin surpassed $4,000, the Daily Caller had a source inform it that “various members of Congress are looking at the compliant capabilities of AML Bitcoin,” in a bid to make cryptocurrencies that meet certain criteria a popular alternative to the U.S. dollar. The move, as stated by the website, is expected to be met with support from libertarian members of Congress, and with opposition from Treasury officers who don’t want the dollar to face competition.

The source reportedly told the Daily Caller that at least one Republican member of Senate and two Republican congressmen are working on the draft legislation. The three lawmakers involved in the issued reportedly asked not to be identified due to the nature and complexity of such a proposal.

According to the source, there is a notable goal, which is to mainstream digital currencies that are to be treated like the U.S. dollar, and there is an entity looking to issue a digital currency that is “compliant with anti-money laundering laws.” It stated:

“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.”

The legislation is expected to be introduced in early September, and could lead to digital currencies replacing the dollar in a lot of transactions. The bill will essentially protect digital currencies against harassment from the federal government, ensure currencies aren’t considered a form of security or investment, and protect transactions using the currencies against taxation.

Last month, CCN.com reported that a Texas Congressman also called for AML/KYC regulations for digital currencies, in order to deter terrorists and criminals. This new bill would help remove obstacles to a digital currency that has “voluntarily taken the initiative to keep the bad guys from using it.”

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Last modified: May 21, 2020 9:35 AM UTC

Francisco Memoria @FranciscoMemor

Francisco is a cryptocurrency writer who's in love with technology and focuses on helping people see the value digital currencies have. Twitter: https://twitter.com/FranciscoMemor