First positive news for Bitcoin came from the lawyers for the Federal Election Commission. They have recommended that the commission approve the use of Bitcoins, as in-kind contributions to federal campaign committees – this came in response to the question from the Conservative Action Fund PAC which is advocating for larger role for the digital currency.
Reportedly, the FEC has 60 days to respond to requests. In his statement Dan Backer, the Conservative Action Fund lawyer who filed the FEC request said that as Bitcoins become a bigger part of the economy, the organization sees a future in this, particularly among libertarian-minded voters. His claim definitely gets support from the fact that recently, Bitcoins’ capitalization is up at $1.6 billion in value.
Second positive development is that two U.S. Senate Committees are going to conduct hearings over the next few weeks. According to Senate aides the two committees will be discussing policy implications of virtual currencies like Bitcoin. They say that the first will be focusing on Bitcoin which has become a new form of payment; however, has been in red after Silk Road seizure.
Contrary to expectations, the prices of Bitcoins have gone up after the seizure of Silk Road that was selling drugs online in exchange of the digital currency. The Senate Committee will be discussing regulatory issues and how it can be brought to taxation.
2013 – An Eventful Year for Bitcoin
Earlier in August this year members of the Bitcoin Foundation, the international body that represents the virtual currency, attended a series of “educational meetings” with politicians, regulators, law enforcement officials as well as federal agencies like the Department of Homeland Security, Treasury Department, and Federal Bureau of Investigation.
After that meeting, Marco Santori, chairman of the Foundation’s Regulatory Affairs Committee, in his statement had admitted that the federal government took an active interest in understanding Bitcoin. He had then said that as such, the goal of these initial meetings was education about the Bitcoin protocol specifically and distributed finance in general.
Before these meetings the U.S. government took the cognizance and the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Treasury Department, issued some guidelines wherein it required that many Bitcoin businesses must register with the U.S. government. Many people contributing in Bitcoin economy admitted that all in all it was a good step on the part of government.
To contact the reporter of this story: Deepak Tiwari at firstname.lastname@example.org