[2022-01-27] Bill might give Yellen unilateral power to ban BTC and crypto

[bbc.reporter]

This news was unnoticed, however, it might be important for the community to be informed of this and what the Biden administration is doing. No one can be certain what their real agenda is anymore. Is this really to ban bitcoin? Are they copying China’s own strategy of making the miners and exchanges leave their jurisdictions? I speculate that they are only using bitcoin as the enemy to expand their power because if it is not bitcoin, the enemy might be something else.



America COMPETES Act of 2022 ‘Disastrous’ for Crypto

Jerry Brito, executive director of Coin Center, a D.C.-based think tank focused on the public policy issues facing cryptocurrencies, warned about the “America COMPETES Act of 2022” in a series of tweets Wednesday. The bill was introduced in the House of Representatives on Tuesday.

Noting that the America COMPETES Act of 2022 “will very likely pass in some form,” Brito explained that it contains the “special measures” provision proposed by Connecticut Congressman Jim Himes “that would be disastrous not just for cryptocurrency but for privacy and due process generally.”

Firstly, it would “Add ‘certain transmittal of funds’ to the list of things that can be banned by the Secretary.” Secondly, it would “Eliminate all public notice and comment requirements.” Moreover, it would “Eliminate the 120-day limitation for measures imposed without regulation.”

He warned that “If adopted into law, this provision would be disaster not just for crypto but for privacy and democratic public process related to *all* types of financial transactions,” elaborating:

It empowers the Secretary to prohibit any (or indeed all) cryptocurrency transactions (or any other kind of transaction) without any process, rulemaking, or limitation on the duration of the prohibition.

Read in full https://news.bitcoin.com/us-bill-giving-treasury-secretary-unchecked-unilateral-power-to-ban-crypto-transactions/

Source https://mobile.twitter.com/jerrybrito/status/1486349099314130952?s=12

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[Poker Player]

Secondly, it would “Eliminate all public notice and comment requirements.” Moreover, it would “Eliminate the 120-day limitation for measures imposed without regulation.”

...

It empowers the Secretary to prohibit any (or indeed all) cryptocurrency transactions (or any other kind of transaction) without any process, rulemaking, or limitation on the duration of the prohibition.

It sounds quite fascist to me.

This is not surprising, however, since socialism and fascism are first cousins. It would give Yelen quasi-dictatorial powers. I hope this is not the case in the end because giving such arbitrary power can end very badly.

[wavessurfing]

Secondly, it would “Eliminate all public notice and comment requirements.” Moreover, it would “Eliminate the 120-day limitation for measures imposed without regulation.”

...

It empowers the Secretary to prohibit any (or indeed all) cryptocurrency transactions (or any other kind of transaction) without any process, rulemaking, or limitation on the duration of the prohibition.

It sounds quite fascist to me.

This is not surprising, however, since socialism and fascism are first cousins. It would give Yelen quasi-dictatorial powers. I hope this is not the case in the end because giving such arbitrary power can end very badly.

if adopted, this law will be counter-productive, just transactions will occur elsewhere.
it will be deeply detrimental to their promotors.

dont forget that cryptos transactions could have been impeached in the us several years ago.

[Lucius]

It sounds quite fascist to me.

This is not surprising, however, since socialism and fascism are first cousins. It would give Yelen quasi-dictatorial powers. I hope this is not the case in the end because giving such arbitrary power can end very badly.

Under the skin, all politicians are more or less the same, striving to have as much power as possible that will give them absolute control over the people. The problem for Western so-called democracies is that such measures do not fit into the democratic societies they promote as fundamental human values. For this reason, the US cannot do what China has done, as Russia or India are trying to do, but use such moves to examine public reactions in order to determine how far they can go without compromising their political positions.

The problem for all of us is the fact that the US holds a large (too big) part of the crypto in the sense that there are the biggest of the biggest players (Coinbase, Grayscale, MicroStrategy), with the fact that they have more than 35% hash power and that the US still has a huge impact on the rest of the world. One such decision would only encourage other countries to try something similar, or they would even be forced to do so.

[famososMuertos]

So...good/bad news!! Remember Hilary Clinton's comment in recent weeks, which by the way caused a stir, was trending for a few days...and then calmed down, is this news surprising?... In fact, Facebook selling Libra in the past few days, who would win in that sale and who loses, in fact with this news, we already have winners.

the epicenter is causing this hello tremors in different political and business sectors, they have even had an impact on public opinion, beware, I am not saying that the epicenter is HC, this has been resonating for some time in the bowels of the establishment.

In any case, it is still another proposal, that even if it is not executed, so important it is reach impact on public opinion and mainly in the corresponding niche, and politicians understand this effect very well.

[DooMAD]

It wasn't quite unnoticed.  We did have a topic about this last week, but I guess it's fair to say it probably didn't receive as much attention as it deserves.

[bbc.reporter]

It sounds quite fascist to me.

This is not surprising, however, since socialism and fascism are first cousins. It would give Yelen quasi-dictatorial powers. I hope this is not the case in the end because giving such arbitrary power can end very badly.

Under the skin, all politicians are more or less the same, striving to have as much power as possible that will give them absolute control over the people. The problem for Western so-called democracies is that such measures do not fit into the democratic societies they promote as fundamental human values. For this reason, the US cannot do what China has done, as Russia or India are trying to do, but use such moves to examine public reactions in order to determine how far they can go without compromising their political positions.

The problem for all of us is the fact that the US holds a large (too big) part of the crypto in the sense that there are the biggest of the biggest players (Coinbase, Grayscale, MicroStrategy), with the fact that they have more than 35% hash power and that the US still has a huge impact on the rest of the world. One such decision would only encourage other countries to try something similar, or they would even be forced to do so.

Also, China’s strategy to ban the cryptospace is much more difficult to do in America. It needs much more maneuvering and more politicking because there is a separation of powers to 3 branches of government. The executive branch, the legislative branch and the judicial branch. This America competes act off 2022 needs to pass congress and the senate before it goes to the table of Joe Biden for review and to be signed into law.

In China, it was simple top-down governance. There was a decision made and the government imposed a ban.

[Lucius]

@bbc.reporter, I agree that it is much harder to do something like that in the US or even harder in the EU where there are a lot of different interests, but it is also a fact that China did not ban cryptocurrencies in one go, but did it in phases that lasted for years. More precisely, it all started in 2013 when Bitcoin was still relatively unknown to the general public, and ended in 2021 with a ban on crypto mining.

Those familiar with the crypto industry will understand that China’s crypto ban is not entirely a surprise. The country has maintained a hostile relationship with its crypto industry since 2013, when it rolled out its first set of crypto restrictions. China’s hostile stance regarding crypto dates back to Dec. 5, 2013, when the People’s Bank of China (PBoC), the Ministry of Industry and Information and other financial watchdogs jointly issued a notice prohibiting banks from handling transactions related to bitcoin.

In an attempt to buoy a weakening yuan and block money from flowing out of China illegally, the country’s central bank began to investigate the activities of crypto exchanges in January 2017. The investigation focused on exchanges’ approach to forex management and anti-money laundering.

While China’s crypto community was still processing this new reality, regulators issued another directive forcing crypto exchanges to shut down voluntarily by Sept. 15.

In April 2019, China’s National Development and Reform Commission (NDRC) labeled bitcoin mining an “undesirable” industry in its preliminary list of sectors that should be encouraged, restricted or phased out by local governments. Bitcoin mining, which is a computer-intensive process of validating bitcoin transactions to earn newly minted bitcoin in reward, fell under the catalog of industries the agency considered to be highly polluting.

For the better part of 2020, the Chinese government tightened its grip on crypto exchange activities within its borders amid an ongoing campaign to crack down on money laundering and fraud. In August, the PBoC revealed its intention to block over 100 foreign websites offering crypto exchange services.

The Chinese crypto industry’s problems in 2021 began in May when the State Council doubled down on past crypto policies by calling for the restriction of crypto mining and trading. Before this, the provincial authorities of Inner Mongolia, Xinjiang and Sichuan provinces, which were all major bitcoin mining hubs, had begun to introduce policies that stifled the operations of bitcoin miners.

Perhaps this tells us best that even under communism, it was not easy for laws to ban Bitcoin to such an extent, and that such a mission in the US would probably be much more difficult than it may seem at the moment. What everyone should worry about in the event that something bad happens after the US bans is that it will have far greater consequences for Bitcoin than anything that has happened in China.

[o_e_l_e_o]

Is this really to ban bitcoin?

No, this bill doesn't ban bitcoin. What it does do is give the government the power to unilaterally freeze transactions or close accounts of any centralized exchange, service, or other entity, without any warning, public notice, due process, legal challenges, etc. Essentially, if you are holding your coins on a centralized exchange or service, then your access to those coins could be removed by the government at any time and there is nothing you can do about it. It's terrible for the whole premise of financial sovereignty, which is the whole point of bitcoin in the first place. But then again, so too is leaving your bitcoin on a centralized exchange in the first place.

Yes, we should be calling our representatives about this, but chances are that will change nothing because they all work in their own self interests and not for the people they claim to represent. Best thing you can do is make sure you are holding all your own keys and all your own coins.

and ended in 2021 with a ban on crypto mining.

There is no chance China are done "banning" bitcoin. There will be another news story this year about another Chinese ban whenever it suits the CCP to spread such FUD.

[Lucius]

There is no chance China are done "banning" bitcoin. There will be another news story this year about another Chinese ban whenever it suits the CCP to spread such FUD.

I don't know what else they could have ban without it already being banned? The only thing that comes to my mind is the ban on the production of mining devices, which, as far as I know, is still legal. Trading and mining are banned, and any possible FUD really won’t make sense, at least not for those who understand how things stand when it comes to cryptocurrencies in that country.

[o_e_l_e_o]

I don't know what else they could have ban without it already being banned?

Mining is banned, and yet we know for a fact that there are still plenty of miners operating in China. Trading is banned, and yet we know for a fact that there are still plenty of people buying and selling bitcoin in China.

A state controlled newspaper - the Economic Daily - published a piece about how China needs to ban bitcoin yet again just a few weeks ago: https://www.bloomberg.com/news/articles/2021-12-25/china-must-close-loopholes-in-crypto-mining-ban-economic-daily

Further bans won't necessarily be about bitcoin itself, but rather the CCP trying to "show their strength" or to be seen to be standing up against this Western plot to overthrow currencies or some other such nonsense.

[Lucius]

A state controlled newspaper - the Economic Daily - published a piece about how China needs to ban bitcoin yet again just a few weeks ago: https://www.bloomberg.com/news/articles/2021-12-25/china-must-close-loopholes-in-crypto-mining-ban-economic-daily

Communism always finds an enemy even where there is none - I know this well because I lived in such a political system where people went to prison for 2-3 years because they sang a forbidden song. China will therefore always continue to hunt ghosts and fight Bitcoin, not because they continue to write nonsense that has nothing to do with common sense, but because Bitcoin is a danger to them that needs to be removed.

Crypto mining is highly energy-consuming and generates a lot of carbon emissions, and also brings risks during production and trading, the paper said. Authorities must strengthen coordination and better use of technology to rein in rogue miners, it said.

Further bans won't necessarily be about bitcoin itself, but rather the CCP trying to "show their strength" or to be seen to be standing up against this Western plot to overthrow currencies or some other such nonsense.

People are such sheep that they have surpassed the sheep themselves, because you really have to be extremely unintelligent to believe that China is important for Bitcoin after everything that has happened in recent years.

[davis196]

No, this bill doesn't ban bitcoin. What it does do is give the government the power to unilaterally freeze transactions or close accounts of any centralized exchange, service, or other entity, without any warning, public notice, due process, legal challenges, etc. Essentially, if you are holding your coins on a centralized exchange or service, then your access to those coins could be removed by the government at any time and there is nothing you can do about it. It's terrible for the whole premise of financial sovereignty, which is the whole point of bitcoin in the first place. But then again, so too is leaving your bitcoin on a centralized exchange in the first place.

This seems pretty anti-constitutional.The government cannot just steal your wealth without any reason.
I agree that centralized cryptocurrency exchanges are pretty much the same as banks.
Storing your crypto coins at a centralized exchange is very risky.
There's even a possibility for a shady crypto exchange to block you coins and use the government as a excuse to scam you.We must return back to the roots of Bitcoin and keep our coins in cold wallets.
Not you keys,not your coins.
I don't really think that this America Competes Act will pass,because some parts seems very anti-constitutional.This document will have to be changed almost completely.

[o_e_l_e_o]

This seems pretty anti-constitutional.The government cannot just steal your wealth without any reason.

You can read the proposed changes on pages 1485 and 1486 of this document: https://rules.house.gov/sites/democrats.rules.house.gov/files/BILLS-117HR4521RH-RCP117-31.pdf. The specific laws it is changing are viewable here: https://www.law.cornell.edu/uscode/text/31/5318A.

Essentially, if the Secretary of the Treasury finds an exchange, any account within that exchange, or any transactions made by that exchange to be of "primary money laundering concern", then the government can unilaterally freeze those transactions or accounts. There is no process for what constitutes a "primary money laundering concern". Essentially if the secretary doesn't like it, then it's fair game.

The secretary has always had this power, but at present has to enforce it through a federal regulation, which comes with due processes, formal notice periods, public consultations, and so on. This change removes all that and just lets the government implement it immediately and without challenge.

I don't really think that this America Competes Act will pass,because some parts seems very anti-constitutional.This document will have to be changed almost completely.

It will absolutely pass because the people voting on it are bought and paid for by Wall Street and fiat banks. They either don't care about its effects on bitcoin, or are actively working against bitcoin.

[PrimeNumber7]

Is this really to ban bitcoin?

No, this bill doesn't ban bitcoin. What it does do is give the government the power to unilaterally freeze transactions or close accounts of any centralized exchange, service, or other entity, without any warning, public notice, due process, legal challenges, etc. Essentially, if you are holding your coins on a centralized exchange or service, then your access to those coins could be removed by the government at any time and there is nothing you can do about it. It's terrible for the whole premise of financial sovereignty, which is the whole point of bitcoin in the first place. But then again, so too is leaving your bitcoin on a centralized exchange in the first place.

I would argue this bill has the potential to de-facto ban bitcoin. If accounts and exchanges are getting shut down left and right, businesses will be afraid to accept bitcoin. Even if a business accepts bitcoin without the use of a payment processor, the government could still take action against the business.

Yes, we should be calling our representatives about this, but chances are that will change nothing because they all work in their own self interests and not for the people they claim to represent. Best thing you can do is make sure you are holding all your own keys and all your own coins.

At least we don't have mean tweets.

[bbc.reporter]

A state controlled newspaper - the Economic Daily - published a piece about how China needs to ban bitcoin yet again just a few weeks ago: https://www.bloomberg.com/news/articles/2021-12-25/china-must-close-loopholes-in-crypto-mining-ban-economic-daily

Communism always finds an enemy even where there is none - I know this well because I lived in such a political system where people went to prison for 2-3 years because they sang a forbidden song. China will therefore always continue to hunt ghosts and fight Bitcoin, not because they continue to write nonsense that has nothing to do with common sense, but because Bitcoin is a danger to them that needs to be removed.

This is a similar situation everywhere and with any other campaign against something that the politicians create to get more money and power for themselves and for their handlers hehehe. We have also witnessed the biggest of these campaigns become normalized already. These are the war on drugs and the war on terrorism. I reckon many countries have also adopted this because it has been a success in creating fud for the politicians in America.

Is the war against the cryptospace next? It is very clear that every law that will be signed for this campaign are laws that will also decrease more of our freedom and increase their control.

[o_e_l_e_o]

I would argue this bill has the potential to de-facto ban bitcoin.

That's nothing new, though. So does the last bill we discussed which could be used to make it illegal for nodes not to collect KYC and tax information for every transaction they process, which is clearly impossible. Thankfully, however, there are plenty of peer-to-peer trading options and plenty of countries which aren't the US and don't have such stupid laws. They could de-facto ban centralized exchanges from operating in the US with this law, but they can't stop you holding your own coins in your own wallet, trading peer to peer, or spending your money with any business or service (in this country or overseas) which accepts bitcoin directly.

Is the war against the cryptospace next? It is very clear that every law that will be signed for this campaign are laws that will also decrease more of our freedom and increase their control.

That's what it's all about though, isn't it? Lindsey Graham has just reintroduced the EARN IT Act back to Congress: https://www.congress.gov/bill/117th-congress/senate-bill/3538. This is a bill which would ban end-to-end encryption and allow the government to scan every single communication you make and everything which is stored online (including in email accounts and cloud back ups). Can't possibly allow people to have sort of control over their data, their money, or their lives. Big Brother knows best.

[Lucius]

Is the war against the cryptospace next? It is very clear that every law that will be signed for this campaign are laws that will also decrease more of our freedom and increase their control.

That war has been going on for at least 10 years, and we know that from what the most famous US defector published in his evidence. At an early stage, they began to develop tools for monitoring and identifying Bitcoin users, which was just the beginning. If we remember how US politics fiercely dealt with FB's attempt to create its own currency because they considered it a direct threat to national security, then one well-known anti-crypto congressman said that "Bitcoin is still just a baby.".

The more Bitcoin threatens the existing system, the more aggressive they will behave, but it is no secret in which direction they are going. After nearly exterminating terrorists or declaring them good guys (Afghanistan), the number one enemy of the state could become Bitcoin, but only after they finish their games in Eastern Europe.

[bbc.reporter]

@Lucius. However, Janet Yellen and the Biden administration might take it further and combine the 2 biggest campaigns, the war on drugs and the war on terrorism, with the war on the cryptospace because bitcoin and other cryptocoins are being used by drug cartels and terrorists. It will leave every cryptocoin user’s head shaking hehehe.

This is why we should be open to ICO, IDO, IWO for democratic funding. Defi for trading without KYC. Anonymous altcoins for privacy and many other new developments that are being created. I know there will be scams, however, there are real projects that will make it very difficult for the government to take everything down because they are decentralized enough and there are many of them.

[Kakmakr]

Well, if Biden leave this decision with butthurt Janet Yellen, we will all suffer as a result of that. We know what happened when she was doing a speech and when the "Bitcoin Guy" held up a "Buy Bitcoin" sign behind her. She did not take kindly to that, so she will take some kind of revenge on Bitcoin for that embarrassment.

It has never been so important for people to make sure that they have FULL control over their own Private keys. The US government or any other government cannot take your bitcoins, if they raid a centralized exchange and you did not store your bitcoins on a Exchange service.