A U.S. congressman has called for a law that allows the government to identify cryptocurrency users and reverse crypto transactions.
“There’s a significant sentiment, increasing sentiment, in Congress that if you’re participating in an anonymous crypto transaction that you’re a de-facto participant in a criminal conspiracy,” he said.
Rep. Bill Foster stresses that the government has an obligation to allow transactions in crypto reverse
Democratic Rep. Bill Foster, of Illinois, who is also co-chairperson of the Blockchain Congressional caucus, addressed during an Axios virtual event on Tuesday regarding regulation of cryptocurrencies. In answer to the topic of ransomws, the congressman said "there is a fundamental distinction between the crypto assets and real-world assets, as well as how criminals want Bitcoin and not money." This is a significant distinction we finally have to make in the law."
He stressed that legislation should empower federal courts in Bitcoin or other crphtocurrencies to identify crypto users and reverse transactions, he said:
In some instances you must be able to go to a court to unmask the participants.
The paper covered cryptocurrencies, such as lending to criminals, "The condition under which we can recover," adding that it is one of the basic judgments regarding the asset of cryptocurrencies.
He said the legislation must deal with whether bitcoin is "really anonymous or there is a court where the participant may be unmasked." "There is also a court, a third party to whom you may go to reverse transactions fraudulent or incorrect."
An example was given by Foster. "If somebody draws you into the alley, puts your head with a pistol and says get out of the cell phone. If you are lucky, or if you can go to court, have the participant unmasked." In addition, "the court can utilize its access to a very tightly secured cryptographeric rear door in a way that allows them to encryptedly reverse blockchain transactions if they judge that the transaction is fraudulent, illegal or incorrect."
The legislator believes that such technologies are needed to safeguard the government against ransomware assaults, like Colonial Pipeline, by people and corporations.
Rep. Foster expressed his opinion:
I simply stated about three things there, like a trustworthy third party and so forth, which will go crypto purists crazy.
He believes that 'Most individuals will have that safeguard of a trusted third party, which can address the problem when they are hacked, stole or even erroneous assumptions, if they have to have a great share of their net value attached into cryptoassets.' He believes.
Foster said cryptocurrencies need to comply with federal regulations and legislation so that they may always be a mainstream tool for carrying out transactions. In reply to the issue of how, given their worldwide and borderless character, the USA will govern cryptocurrencies, he stated: "We will have to establish a right here between the legal and the unlawful regimes," he said:
Congress has a big feeling, a growing feeling, that you are a de facto participant in a criminal conspiracy when you take part in an anonymous crypto transaction.
Many others used social media to criticize the lawmaker, saying he doesn't understand how bitcoin works. Bitscoin is not being reversed. Some have reacted to the claim made by Foster that they are "not de-facto criminals."
What do you think of Rep. Foster's request for legislation to allow the government to reverse its transactions with cryptocurrency? Please let us know in the following comment area.
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A U.S. congressman has called for a law that allows the government to identify cryptocurrency users and reverse crypto transactions.
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