A Congressman’s suggestion could lead to Bitcoin blasphemy.
The confidence of investors in cryptocurrencies like bitcoin gradually rises. The crypto community obviously gets larger every single day. Yet, the lack of regulatory clarity has haunted and hindered the new industry since its beginning.
Democratic Representative Bill Foster stated that courts shall be allowed to reveal crypto users and reverse fraudulent transactions. Having the respect to the “poorly understood” and “minimally regulated industry,” Foster continued,
“I sometimes feel kind of lonely here… Very few understand the nuts and bolts of it [the industry].”
The Congressman’s Suggestions
It shall be emphasized that the Congressman is a member of the Financial Services Committee and he also co-chairs the Blockchain Caucus. Explaining the need for regulators to keep watch. The Congressman suggested that ultimately has the potential to ruin the essence of Bitcoin and crypto related-transactions.
“You (authorities) have to be able to go to court to unmask participants under some circumstances. It doesn’t have to be visible to the whole world.”
Advocating another form of pseudo-anonymity, Foster suggested that a third party. For instance, the court could learn about the real-world identity of a crypto user with a “very heavily guarded key.” According to him, it would act like a “cryptographic backdoor in essence” and will allow them to reverse transactions on the blockchain.
He argued that those kinds of tools were necessary for the government to protect itself, businesses, and individuals from ransomware attacks. He said,
“… But in fact, there’s not a technological alternative that I’m aware of. For most people if they’re going to have a big part of their net worth tied up in crypto assets, they’re going to want to have that security blanket of a trusted third party that can solve the problem.”
Having the respect to regulations, the Congressman continued,
“We’re going to have to establish a law between the legal and illegal regimes here. 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.”
Foster finished his statement by saying that the middle-ground worth striving for is third party anonymity.
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