The United States Congress wants to study how other countries take advantage of Bitcoin mining. That bill could bring better regulations, as well as greater surveillance of that activity.
US Senators Maggie Hassan and Joni Ernst have their sights on the mining operations of Bitcoin and other cryptocurrencies globally. The legal project of the officials seeks that the Treasury Secretariat prepare reports on how other countries are using and extracting those assets.
Hassan (Democrat, Senator for the state of New Hampshire) and Ernst (Republican, Senator for the state of Iowa) introduced the proposal on September 27th before the US Senate. The senators want to identify the types of cryptocurrencies mined from the fiscal year 2016 to 2022. They also want to know their value in US dollars inside and outside the United States.
They hope to determine how those countries could become stronger or weaker with the use and mining of cryptocurrencies in their territory.
The bill needs a report to evaluate how Bitcoin mining affects the supply chain of components like superconductors and computer chips. In addition, the document states how that activity could improve it if opportunities arise in that regard.
According to Senator Hassan, the government must know the role of cryptocurrencies in the global economy and how other countries take advantage of them. In that way, she expects the competitiveness of the United States to strengthen. She said she was pleased to partner with Ernst to ensure that the Treasury Department stays up to date on the use of cryptocurrencies.
A Better Regulation Could Reduce the Surveillance of Bitcoin Mining
The approval of that law may lead to more initiatives by the US Congress that allow incentives for Bitcoin mining in a regulated way. It could also be a tool to increase the surveillance of that activity worldwide.
Senator Hassan has expressed her skepticism about cryptocurrencies and opposes the anonymity that some of them allow. In a letter, the official called on federal law enforcement agencies to strengthen the know-your-customer (KYC) user identification laws. She says the purpose is to prevent the free trade of cryptocurrencies from theft or illicit activities.
The official sent the letter to the Department of Justice, the Internal Revenue Service, the Department of Homeland Security, the Securities and Exchange Commission (SEC), and the Department of the Treasury.
The United States intends to breach the privacy of users of BTC and other cryptocurrencies. However, the country does not intend to ban them as China has. Some members of Congress even see that ban as an opportunity for the US to do the opposite.
Katie Haun Believes the United States Should Do the Opposite of China
Attorney Katie Haun said the United States should do the exact opposite of China regarding cryptocurrencies. She believes that the regulation is of great importance and cannot be the same for all.
Haun said she is disappointed that the SEC penalizes cryptocurrency companies trying to comply, such as the Coinbase case. She noted that the industry suffers punishment despite good-faith efforts while others who avoid the regulations benefit.
Likewise, she stressed that the industry does not reject the application of regulations. However, she explained that they want clarity without receiving discriminatory treatment.
By Alexander Salazar