Members of the U.S. government are steadily preparing legislation towards the use of cryptocurrencies. Some representatives from Congress want to add strict regulatory guidelines, and some of them believe virtual currencies can never be compliant. According to reports, three members of Congress are in the midst of drafting legislation in order to protect the rights of citizens utilizing bitcoin and other digital assets.
‘Mainstream Digital Currency So It Can Be Treated Just Like the American Dollar’
U.S. Congress members have been ramping up efforts towards researching and developing laws for bitcoin and other digital currencies. According to the Daily Caller, three U.S. representatives want to make bitcoin compliant, but also protect these assets from the overreaches of government. Recently agencies like the IRS have been investigating the subject of citizens not paying their taxes, and there have been many Localbitcoins arrests nationwide. Further, there have even been discussions of the TSA seizing phones, computers, and passwords at U.S. airports as well. At the moment there are no laws protecting citizens from government related transgressions.
A source close with the representatives tells the Daily Caller that the three officials are drafting legislation to protect citizens, as long as they meet regulatory requirements. According to the officials, some members of the U.S. treasury take issue with the framework but the drafts are being supported by Congress members with Libertarian ideals. The source explains that the lawmakers compile of two Republican House representatives, and the other is a Republican member of the Senate. The next few months of lawmaking is set to begin after this August’s Congressional recess, and the three offices aim to push the digital asset protection guidelines over the next few months.
“The centerpiece of the plan is to mainstream digital currency so it can be treated just like the American dollar,” the source explains.
“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.”
Working Through Issues That Stopped Protective Cryptocurrency Legislation in the Past
The officials are aware that the biggest hurdle for bitcoin and other digital currencies is moving past the idea that cryptocurrency is mainly used for illegal activities. The three offices are proposing a legislative model that aims to prevent illicit behavior and money laundering. The members of Congress drafting the framework don’t want to be identified at the moment, but plan to introduce the proposal to Congress this September.
“This is a very complicated issue, and the staff is working through some issues that have in the past stopped alternative currencies from being launched,” explains the source close to the U.S. lawmakers.
Protection from Federal Government Harassment and Removing Obstacles
Additionally, the representatives believe laws “need to change to protect digital currencies from federal government harassment”. The officials think bitcoin should not be treated as a security and everyday transactions need to be protected from tax laws.
“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,” the executive associated with the matter concluded.