Fear, Terror To Be Used By Senate To Regulate Virtual Currencies Out Of Existence

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The Senate Homeland Security and Government Affairs Committee set the wheels in motion this week for a comprehensive review of how it plans to clamp down on virtual currencies like Bitcoin.

In a letter to seven Federal agencies Monday, the panel requested feedback and policy proposals for virtual currency regulation.

The letter, signed by the committee’s Chairman Senator Tom Carper (D-Del.) and ranking member Senator Tom Coburn (R-Okla.), expresses lawmaker concerns that virtual currency “can be sent nearly anonymously, leaving little or no trail for regulators or enforcement agencies.”

“Their near anonymous and decentralized nature has also attracted criminals who value few things more than being allowed to operate in the shadows,” the letter continues.

Entities that received the letter include:  the Department of Justice, the Federal Reserve, the Treasury, the Securities and Exchange Commission and the Commodity Futures Trading Commission.

Since Bitcoin began receiving widespread attention in the media as a viable alternative to cash, Federal agencies have kept a close watch on the startup and on firms with which it does business.

Liberty Reserve, another virtual currency system based in Costa Rica, was shut down in May when the Justice Department charged the company with money laundering and used the Patriot Act to lock it out of the American financial system.

The government built a case against Liberty Reserve decrying customers’ ability to anonymously convert money into virtual currency and transfer it from account to account with a 1 percent transaction fee. Justice and the Treasury officials said that allowed criminals to hide the sources of their money.

“The global enforcement action we announce today is an important step towards reining in the ‘Wild West’ of illicit Internet banking,” U.S. Attorney Preet Bharara said in a statement at the time. “As crime goes increasingly global, the long arm of the law has to get even longer, and in this case, it encircled the earth.”

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Sam Rolley

Sam Rolley began a career in journalism working for a small town newspaper while seeking a B.A. in English. After covering community news and politics, Rolley took a position at Personal Liberty Media Group where could better hone his focus on his true passions: national politics and liberty issues. In his daily columns and reports, Rolley works to help readers understand which lies are perpetuated by the mainstream media and to stay on top of issues ignored by more conventional media outlets.

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  • vicki

    From the article:

    “The letter, signed by the committee’s Chairman Senator Tom Carper (D-Del.) and ranking member Senator Tom Coburn (R-Okla.), expresses lawmaker concerns that virtual currency “can be sent nearly anonymously, leaving little
    or no trail for regulators or enforcement agencies.”

    “Their near anonymous and decentralized nature has also attracted
    criminals who value few things more than being allowed to operate in the
    shadows,” the letter continues.”

    That is particularly funny and hypocritical considering that most of those folk think that the NSA should be left alone in the shadows to spy on us.

    • chocopot

      Their cry about criminals being allowed to operate in the shadows sounds much like their cry “it’s for the children!” Nothing troubles these control freaks more than someone being able to live freely and do things without these s–mbags knowing all about it.

  • fedup15232

    The Federal Government, through its Federal Reserve, is the largest money-laundering operation on Earth. And I’d suggest that the Federal Government is the largest organized criminal enterprise on Earth as well.

    • JLouisK

      And that’s why they don’t like competition, or hard currency. They like monopoly money and credit cards. Soon, paper fiat won’t really be used, it will all be credit/debit.

    • BobTrent

      It is not fair to call the United State a “criminal enterprise” without noting that ALL governments are criminal enterprises.
      They are protection rackets. Their victims/beneficiaries pay tribute (“taxes”) to the protectors for protection from the protectors, from rival protection racketeers and from independent bandits.
      No one has ever been able to come up with a way to keep the peace among large populations not closely related other than by government – the legal protection racket.

  • Jim Kelly

    “Since Bitcoin began receiving widespread attention in the media as a viable alternative to cash, Federal agencies have kept a close watch on the startup and on firms with which it does business.”

    There seems to be some dissonance here. Bitcoin is not a thing, it is not a startup, a company, a group of people. Bitcoin is a protocol. Bitcoin does not “do business” with anyone, that is like saying the dollar does business with companies in China. People do business USING dollars and bitcoins.

  • ibn insha

    What criminal activity was conducted with Bitcoin? And what criminal activity has not been conducted by US Dollar?

  • usaok59

    Here now! We can’t have the peons figuring out how to beat the Fed Reserve system! We need to squash this BitCoin stuff right now before the little people get too much power, says our dear leader!

  • had_to_be_said

    Three frightening phrases that should always alert any American, that traitorous politicians are lying to them…

    “…wild west…”

    “…give [blank] the tools they need…”

    “…common-sense, measures…”

  • Vash the Stampede

    their mad because they did not think of it first

  • Vash the Stampede

    their mad because they did not think of it first