Senate Launches Bitcoin Inquiry

I just stumbled across this and thought it may interest folks. It's a Memo sent August 12, 2013 from the Senate Committee on Homeland Security and Governmental Affairs to the Department Of Homeland Security, requesting specific documents and information. It seems the Senate is looking for ways to exploit and regulate the new virtual currencies.

Over the past several months, “virtual currencies" have received increasing attention from law enforcement, the business community, the financial sector, and the federal government. . . . . . They can be sent nearly anonymously, leaving little or no trail for regulators or enforcement agencies.

(abridged quote for space)

In case anyone thought Congress wasn't well aware of the issues, this seems to remove that.

Last month, for example, the Securities and Exchange Commission charged a Texas man with running a virtual currency Ponzi scheme through which he raised about $60 million worth of Bítcoin . . . . . The defendant in the case argued that the Court had no jurisdiction, since Bitcoin is not money and not part of anything regulated by the United States. The Court, however, concluded that Bitcoin is a currency or form of money.

(abridged quote for space)

I recall some posting how that was a great thing to see happen. A court validating Bitcoin as a real currency. What could be better, some seemed to think? (What could be worse...is what crossed my mind ..and this is why).

Given that virtual currencies appear to be an important emerging area, pursuant to its authority under Rule XXVUO of the Standing Rules of the Senate, Section 101 of Senate Resolution 445 (108th Congress), and Section 12(0) of Senate Resolution 64 (113th Congress), the Committee on Homeland Security and Governmental Affairs has initiated an inquiry into virtual currencies. As part of that inquiry, our Committee staff has been interviewing individuals inside and outside of government regarding the threats and risks related to virtual currency - and also the promise it holds in some areas.

Source: Bitcoin Letter by Senate Homeland Security Panel

Well, when something starts to become as good as the real thing, expect to be treated like it would be the message here, I'd say. These are just parts of the overall letter and it's worth reading the whole thing. It shows pretty clearly that they do take this seriously as a new market/currency to both regulate and manipulate. The shadowy existence couldn't last forever.

Originally posted by Wrabbit2000
Well, when something starts to become as good as the real thing, expect to be treated like it would be the message here, I'd say. These are just parts of the overall letter and it's worth reading the whole thing. It shows pretty clearly that they do take this seriously as a new market/currency to both regulate and manipulate. The shadowy existence couldn't last forever.

Given the documented manipulation and corruption by the Federal Reserve private banks and the federal government, if they stick their nose in Bitcoin, we need to develop something else.

Anything these criminals touch turns to #.

The discussions behind closed doors is about how to issue loans and bonds with bitcoins.

Then they can issue "bitcoin backed securities" and create bitcoins out of thin air.

Just like mortgage backed securities and u.s. dollars !!

reply to post by xuenchen


I'm wondering just what the process is for mining or making more Bitcoin? I'm not real clear on that. If it's computer/processor related....then couldn't the most powerful computer centers in history have an impact if they chose to? Ft Meade and Utah could do odd things, I'd think? The lines of who does what seem to have blurred enough to where that can't really be written off, can it?