Bad News: Government Takes Cryptocurrency Seriously (Chapter 3, Part 2)
A dangerous legal cloud on the horizon has edged closer. On Tuesday, November 28, Senate Bill 1241 was heard by the U.S. Congressional Committee on the Judiciary. Whether or not the bill passes, it expresses the direction of government's increasingly aggressive interest in cryptocurrency.
Section 13 of the "Combating Money Laundering, Terrorist Financing, and Counterfeiting Act of 2017" seeks to amend 31 U.S. Code § 5312, which addresses definitions and their application. Specifically, the revision would include "digital currencies" as "monetary instruments" and "any digital exchanger or tumbler of digital currency" as a "financial institution." The other sections become relevant because the redefinition of digital currencies makes them fall under their jurisdiction.