Senate pressing regulators on Bitcoin risks and oversight
A Senate homeland security committee seeks explanations from federal regulators and law enforcement officials as to how they plan to oversee digital currencies. This follows months of climbs in value for Bitcoin, which started the year trading at $15 and has since surpassed $200. Governments now are on notice and concerned about how digital markets and decentralized, unregulated currencies will affect commerce. And crime. The Bitcoin marketplace is now four years old and valued at more than $1 billion. Startups in this space are trying to figure out nebulous government regulations while....
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A major financial oversight body within the US government created in the wake of the financial crisis has identified bitcoin and distributed ledger systems in general as a potential systemic risk. The Financial Stability Oversight Committee (FSOC) said in the new report released yesterday that the technology represented an innovation that “appear[s] poised for substantial near-term growth” and that it is reflective of a shifting landscape that merits attention from regulators. As a broad recommendation, the committee said that regulators should prepare to adjust accordingly if the....
Article updated on August 15 at 18:40 (BST). A US Senate committee has begun an inquiry into bitcoin and virtual currency, pressing financial regulators and law enforcement agencies for further information and guidance. In a letter sent on Monday Aug 12, the US Senate Committee on Homeland Security & Governmental Affairs asked the Department of Homeland Security (DHS) for information on any policies, guidance, plans and strategies they have that pertain to virtual currencies. The letter (embedded below) was sent to the secretary of the DHS, The Honorable Janet Napolitano, from the Senate....
California state officials are considering the creation of a set of regulations that would seek to inform consumers of the risks associated with using virtual currencies while simultaneously creating safeguards against said risks. The Department of Business Oversight claims that the state's money transmitter laws, which are currently used to regulate business such as Western Union, are applicable to Bitcoin. Speaking with Bloomberg, California Department of Business Oversight spokesperson Tom Dresslar said: The consensus among staff is that the department and commissioner could regulate....
The New York Times reports that American officials at the state and federal levels are concerned about whether digital currencies can police themselves and have begun “broad investigations.” Already, the Senate homeland security committee has sent out a written query asking financial regulators and heads of law enforcement what threats and risks “virtual currency” poses. “This is something … that demands a whole government response,” an anonymous source close to the inquiry is quoted as saying. This all coincides with a subpoena from the State of New York’s Superintendent of Financial....
The Senate bill to mitigate the risks from El Salvador adopting bitcoin as legal tender has advanced in the U.S. “As El Salvador has adopted bitcoin as legal tender, it’s critical we mitigate risks to our financial system,” said one of the U.S. lawmakers who introduced the bill. Bill to Mitigate Risks From Bitcoin Being Legal Tender in El Salvador Passes Senate Committee The U.S Senate Foreign Relations Committee (SFRC) has advanced the ‘‘Accountability for Cryptocurrency in El Salvador Act’’ or ‘‘ACES Act.’’ The....