Skip to comments.Fed Doesn't Have Authority to Regulate Bitcoin, Yellen Says
Posted on 02/27/2014 5:05:15 PM PST by 2ndDivisionVet
The Federal Reserve Board doesn't have the authority to regulate bitcoin, Fed Chair Janet Yellen said Thursday.
"To the best of my knowledge, there's no intersection at all in any way between bitcoin and banks the Federal Reserve has the ability to supervise or regulate," Yellen told members of the Senate Banking Committee. "The Federal Reserve simply does not have authority to supervise or regulate bitcoin in any way."
Yellen was responding to questioning from Sen. Joe Manchin, D-W.Va., who sent the Fed and other banking regulators a letter on Wednesday calling on them to banor at least curbthe decentralized, virtual currency's use in the United States. Manchin has expressed concerns about bitcoin's anonymity making it appealing for criminals.
"It certainly would be appropriate, I think, for Congress to ask questions about what the right legal structure would be for, you know, virtual currencies that involve nontraditional players," Yellen said. The Senate Homeland Security and Governmental Affairs Committee is putting together a report on virtual currencies, a committee aide said in an email Wednesday.
Bitcoin was introduced by a programmer or programmers by the name of Satoshi Nakamoto in 2009. There is no central issuer of the cryptocurrency, which is "mined" by computers as they solve complex math equations. "It's not so easy to regulate bitcoin, because there is no central issuer or network operator to regulate," Yellen said Thursday.
The Fed chair was appearing before the committee to deliver her semiannual monetary policy report to Congress.
So sit down and shut up Manchin.
I’m not fully aware of the laws but some individual (or entity) coined currency and I understand THAT to be in violation ... but again ... I’m not sure
YaBut ... wasn’t there a whole BUNCH’a trouble concerning Andrew Jackson and The Bank behind that ?
Yellen is giving Machin cover. This is her way of politely telling him to shut his trap, we don’t want people to know. We in the Obama regime will outlaw this on the down low.
Manchin is a typical politician. If you don’t understand something you must ban it.
You know.... like the fed is doing now.
Wouldn’t a private bank note be similar to a check?
Maybe, if it was coined within U.S. borders. If “mining” is the same as “coining”, then these can be minted anywhere in the world.
Manchin’s just pissed because he hasn’t received a cut of Bitcoin.
The Fed is not the US government or legislature and has no power to issue regs or write laws.
It’s a private bank of which we know very little.
I’m surprised someone from Øbummer’s admin had the gall to say we can’t regulate something. How refreshing.
Ms. Yellen doesn’t belong to the Obama administration, she’s the chairwoman of the Federal Reserve.