Sen. Manchin demands complete US ban on Bitcoin

[Eugene]

Source: CNET

Sen. Manchin demands complete US ban on Bitcoin

by Declan McCullagh February 26, 2014 12:02 PM PST

A US senator is asking the federal government to take this remarkable step: completely ban Bitcoin.

Joe Manchin, a Democratic senator representing West Virginia, sent a letter Wednesday to the Treasury Department, the Federal Reserve, and other regulators characterizing the virtual currency as encouraging "illicit activity" as well as being "highly unstable and disruptive to our economy."

Manchin, who is a member of the Senate banking committee, suggested in the letter -- titled "Manchin Demands Federal Regulators Ban Bitcoin" -- that a complete prohibition was appropriate because Thailand, China, and South Korea have already enacted severe restrictions or bans of their own.

It's unlikely that the Federal Reserve and the executive branch possess the statutory authority to prohibit Bitcoin without a new law enacted by Congress and signed by the president -- making Manchin's letter something of a publicity stunt. On the other hand, regulators likely do have the authority to levy more rules and restrictions on Bitcoin-related companies that would increase costs, decrease interest among investors, and, at the margin, put some startups out of business.

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Read more: http://news.cnet.com/8301-13578_3-57619592-38/sen-manchin-demands-complete-us-ban-on-bitcoin/

[jberryhill]

1. Heh....

"t's unlikely that the Federal Reserve and the executive branch possess the statutory authority to prohibit Bitcoin without a new law enacted by Congress and signed by the president"

Yeah, and it's unlikely that Congress has the authority or, frankly, the ability to do so.

First, there is a First Amendment problem with banning my ability to transmit pieces of a math problem.

Second, bitcoins can be exchanged by shortwave radio, steganographic encryption, and any way to get bits from one place to another. Short of isolating ourselves from all global communication systems, it's a tall order.

[Earth_First]

2. Oh, the irony dear Senator.

Let's tackle a few more tangible items on Wall Street first.

Those pose a far, far more disruptive to our economy than some cyrptocurrency du jour.