Federal Reserve has no authority to regulate Bitcoin, chairwoman says

[Shawn Knight]

Bitcoin has had a rough go of it here lately but fortunately for the crypto-currency, it received a bit of good news on Thursday as Federal Reserve Chairwoman Janet Yellen told the Senate Banking Committee that the Federal Reserve simply don’t have the authority to supervise or regulate Bitcoin in any way.

Yellen described the virtual currency as a payment innovation that is taking place entirely outside the banking industry. She added that it would certainly be appropriate for Congress to ask questions about what the right legal structure would be for virtual currencies that involve non-traditional players. Her statement will no doubt help set the tone for future discussions.

The highly volatile digital currency has been at the center of attention this week after Mt. Gox, one of the most prominent Bitcoin exchanges on the web, suddenly went offline without warning or explanation – taking some 744,000 Bitcoins with it in the process. The exchange has since filed for bankruptcy protection in Japan.

Some have deemed the failure of Mt. Gox as the beginning of the end for Bitcoin but I think that’s a bit premature.

It’s a blow against the budding virtual currency that has tarnished its reputation among investors but as outlined in a recent joint statement from several industry leaders, the actions of one company do not reflect the resilience or value of the entire Bitcoin platform.

The currency has suffered through other catastrophes in the past and eventually rebounded each and every time. Given Bitcoin's recent surge in popularity and the sheer amount of money that’s been pumped into the ecosystem, I see little reason why it won’t bounce back yet again.

Permalink to story.

https://www.techspot.com/news/55843-federal-reserve-has-no-authority-to-regulate-bitcoin-chairwoman-says.html

 

[spencer]

THAT'S RIGHT I hope you reserve workers all burn in an endless pit for the tyranny your system has brought forth.

 

[Guest]

"the Federal Reserve ... don’t have ....." ??? Yeah, the Illiterati ride again.

 

[IvanAwfulitch]

Since when has a lack of authority ever stopped the US Government in the last 60 years?

 

[XB Cold Fingers]

Of course the Federal Reserve has no authority to regulate Bitcoin. Bitcoin is not a US currency. The FED can regulate the money supply and interest rates - relating to US Dollars and US Treasury notes. It can't touch Bitcoins, or Australian Dollars, Canadian Dollars, Yen, Yuan, or Euros.

 

[Kibaruk]

Has that stoped 'muricans from anything? Hahahaha

 

[MilwaukeeMike]

Of course the Federal Reserve has no authority to regulate Bitcoin. Bitcoin is not a US currency. The FED can regulate the money supply and interest rates - relating to US Dollars and US Treasury notes. It can't touch Bitcoins, or Australian Dollars, Canadian Dollars, Yen, Yuan, or Euros.

I'm glad it only took until the 4th post before some common sense showed up.

 

[Teri Chetwood]

"the Federal Reserve ... don’t have ....." ??? Yeah, the Illiterati ride again.

Ahh, give the illiterate journalism student who wrote it a break.

 

[davislane1]

"the Federal Reserve ... don’t have ....." ??? Yeah, the Illiterati ride again.

Question of the Day: Are Grammar Nazis cognizant of their own proclivity for committing usage errors in their own trivial and pretentious chidings?

 

[havok585]

Federal Reserve? they shouldnt have any authority over us currency AT ALL, this is mind boggling, a private entity saying this, and ppl think it's actually federal. bWHAHAH, stupid goons.

 

[captaincranky]

Then quite frankly, the Federal Reserve needs to write legislation so that it can. (regulate Bitcoin).

Or maybe "da Fed needz to be writin legislashun so dat it dun beez abul ta reg-oo-late Beetcoin".

Given the pervasive sentiment about the grammar in the article, I though I'd translate it into English and Jive, so that everyone can participate....(y)

I've got Espanole on tap as well! All you need do is ask....

 

[captaincranky]

Question of the Day: Are Grammar Nazis cognizant of their own proclivity for committing usage errors in their own trivial and pretentious chidings?

I lose sleep over it. My mistakes in spelling, punctuation, syntax and usage, linger in my mind like a gypsy curse. Why, I've been known to edit month old posts if I see an error.

This is a good part of the reason why, the email you get, is never quite the post you'll see, when you visit the site.

Firefox doesn't understand the difference between proper nouns and adjectives. Therefore, it actually promotes bad grammar. For example, consider, "American". It should only be capitalized when it's being used as a noun, (or at the beginning of a sentence, obviously). I think the difference between, "he is an American, made in America", and "american made", is a fair example. So, "Firefox put me up to it". That's my story, and I'm sticking to it....

And now, let's examine, or rather, "grammar nazi",(*) your post.(y)

Question of the Day: Are Grammar Nazis cognizant of their own proclivity for committing usage errors in their own trivial and pretentious chidings?

A colon signals the beginning of a series of items. A semicolon is used to tentatively join independent clauses, which would likely survive as sentences on their own. With that in mind, please accept with the grain of salt I'm serving it with, my rewrite or your post.

Question of the day, "are Grammar Nazis cognizant of their own proclivity for committing usage errors in their own trivial and pretentious chidings"?

(Simple comma after "day". I suppose you can use quotation marks around the body of the question, as the way the sentence is formed, you are basically quoting yourself speaking aloud).

And then there's my truly pompous, heavily embellished version; "are these annoying and sanctimonious Grammar Nazis, fully cognizant of their clueless propensity for committing usage, spelling, punctuation, and syntax errors, in the insignificant, irrelevant, and unsolicited, tripe they publish"?

"Grammar nazi", in this instance, is used, (incorrectly(?)), as a compound verb, and IMHO, doesn't need to be capitalized, Firefox be damned!

 

[Guest]

So, just for the benefit of Captain Ego, sorry, Cranky, who shouted me down with cries of "conspiracy theorist" the last time I mentioned this, I will repeat what I think will happen with Bitcoin.

The global elite plan to eliminate cash from society and replace it with a single global virtual currency and make every financial transaction we make traceable. Bitcoin is enjoying ever increasing press coverage now so as to get the public into the idea (articles such as this one for example). Bitcoin in its current format is being made out to be "dirty" and not to be trusted.So, in order to appease the public of any security concerns, the governments will bring in a plan to regulate it and probably rename it in an effort to change the public perception. They will then go on a massive global propaganda exercise to convince all of us sheep that this new global virtual currency is amazing! The process is called Problem, Reaction, Solution and is used time and time again to force lies and propaganda on the masses in order to pass laws that otherwise would not stand a chance!

Let's face it, virtual currency is nothing new. Our current system is pretty much there already. Our salaries are nothing more than figures on a computer and so are our debts. It is virtual money and doesn't really exist. Other than ATM's which perpetuate a false illusion, banks are not stashed to the rafters with cash! This is why they dread a "run" and will call upon the full force of the law to stop them from happening if necessary.

One other major factor in the control of money is that the banks, again in the name of "security," are making it increasingly more difficult to get our hands on our own money using a plethora of PIN's, passwords/usernames and other obstacles. So convinced are they of their authority and control over us, in some areas, they even have the audacity to charge us for withdrawing our own cash!

So to sum up, once we have accepted a single global virtual currency, the banks will then have total and utter control over the movement of money and who is "allowed to have it" and the governments of the world will be able to tax every single penny of it except for that which makes its way to the elite. The cash bartering system will probably be made illegal thus sealing the fate of every human on this planet to complete financial slavery.

I am not religious but I have studied it. In Revelations, there is a passage which says something along these lines; "those who do not carry the mark of the beast will not be able to buy or sell."

It makes you think.

 

[Camikazi]

Question of the Day: Are Grammar Nazis cognizant of their own proclivity for committing usage errors in their own trivial and pretentious chidings?

I lose sleep over it. My mistakes in spelling, punctuation, syntax and usage, linger in my mind like a gypsy curse. Why, I've been known to edit month old posts if I see an error.

This is a good part of the reason why, the email you get, is never quite the post you'll see, when you visit the site.

Firefox doesn't understand the difference between proper nouns and adjectives. Therefore, it actually promotes bad grammar. For example, consider, "American". It should only be capitalized when it's being used as a noun, (or at the beginning of a sentence, obviously). I think the difference between, "he is an American, made in America", and "american made", is a fair example. So, "Firefox put me up to it". That's my story, and I'm sticking to it....

And now, let's examine, or rather, "grammar nazi",(*) your post.(y)

Question of the Day: Are Grammar Nazis cognizant of their own proclivity for committing usage errors in their own trivial and pretentious chidings?

A colon signals the beginning of a series of items. A semicolon is used to tentatively join independent clauses, which would likely survive as sentences on their own. With that in mind, please accept with the grain of salt I'm serving it with, my rewrite or your post.

Question of the day, "are Grammar Nazis cognizant of their own proclivity for committing usage errors in their own trivial and pretentious chidings"?

(Simple comma after "day". I suppose you can use quotation marks around the body of the question, as the way the sentence is formed, you are basically quoting yourself speaking aloud).

And then there's my truly pompous, heavily embellished version; "are these annoying and sanctimonious Grammar Nazis, fully cognizant of their clueless propensity for committing usage, spelling, punctuation, and syntax errors, in the insignificant, irrelevant, and unsolicited, tripe they publish"?

"Grammar nazi", in this instance, is used, (incorrectly(?)), as a compound verb, and IMHO, doesn't need to be capitalized, Firefox be damned!

*Salutes his superior* I learned something today, thank you sir.

 

[captaincranky]

So, just for the benefit of Captain Ego, sorry, Cranky, who shouted me down with cries of "conspiracy theorist" the last time I mentioned this, I will repeat what I think will happen with Bitcoin.

The global elite plan to eliminate cash from society and replace it with a single global virtual currency and make every financial transaction we make traceable. Bitcoin is enjoying ever increasing press coverage now so as to get the public into the idea (articles such as this one for example). Bitcoin in its current format is being made out to be "dirty" and not to be trusted.So, in order to appease the public of any security concerns, the governments will bring in a plan to regulate it and probably rename it in an effort to change the public perception. They will then go on a massive global propaganda exercise to convince all of us sheep that this new global virtual currency is amazing! The process is called Problem, Reaction, Solution and is used time and time again to force lies and propaganda on the masses in order to pass laws that otherwise would not stand a chance!

Let's face it, virtual currency is nothing new. Our current system is pretty much there already. Our salaries are nothing more than figures on a computer and so are our debts. It is virtual money and doesn't really exist. Other than ATM's which perpetuate a false illusion, banks are not stashed to the rafters with cash! This is why they dread a "run" and will call upon the full force of the law to stop them from happening if necessary.

One other major factor in the control of money is that the banks, again in the name of "security," are making it increasingly more difficult to get our hands on our own money using a plethora of PIN's, passwords/usernames and other obstacles. So convinced are they of their authority and control over us, in some areas, they even have the audacity to charge us for withdrawing our own cash!

So to sum up, once we have accepted a single global virtual currency, the banks will then have total and utter control over the movement of money and who is "allowed to have it" and the governments of the world will be able to tax every single penny of it except for that which makes its way to the elite. The cash bartering system will probably be made illegal thus sealing the fate of every human on this planet to complete financial slavery.

I am not religious but I have studied it. In Revelations, there is a passage which says something along these lines; "those who do not carry the mark of the beast will not be able to buy or sell."

It makes you think.

Well, face it, the Bible is largely comprised of the travails and superstitions of ancient people. If you buy into that crap, then you should probably turn your prodigious efforts toward forcing the teaching of "Creationism", in every school around the world.

You remind me a bit of Karl Marx. He was rather fond of spouting the same, unachievable dogma, over and over.

As far as your ramblings about power elite go, they're mostly a statement of the obvious. The mighty have always mistreated the meek. Given the natural law, "survival of the fittest, I don't really see that changing anytime soon. Consider the Palace of Versailles. Oh never mind, heads did roll over that one.....

In fact, if you read the first ten pages of, "The Communist Manifesto", you'll know how it ends, and ends, and ends, ad nauseum.

So, we've already examined my egotism, let's take a look at yours. You think what you have to say is so very important.

You also seem to be thinking on a global monetary scale, and that "Bitcoin", is the right "money", to back for that job.

However, in computer parlance, the "currency" of any country is, "an abstraction layer", just above the physical reality. Bitcoin, is "an abstraction layer", on top of that "abstraction layer". And so, doesn't conjure up much faith or respect. (IMHO, of course).

In any event, yes all capitalist endeavors charge for their goods and services, banks are no different in that respect.

However, a great deal of the difficulty of accessing our own money, is an endeavor by the financial institutions, to prevent someone else from accessing your money.

Bitcoin represents several, (what I consider to be), a slew of criminal behaviors:

1. Theft by deception
2. Counterfeiting
3. Income tax evasion
4. Treason (*)
5. Ponzie / Pyramid schemes

(*) If you plot the overthrow of your government by any means, that's considered "treason". A nation's "currency", is the avatar of its physical holdings, and is directly associated with its viability in matters of trade, and so forth. Therefore if you devalue, or attempt to devalue, the currency of any sovereign entity, it could well be described as, "treason".

The internet is not a sovereign entity, it is merely a method of communication, and therefore is NOT in a position to exempt itself from the laws and protocols, of the physical world.

 

[Guest]

"Given the natural law, "survival of the fittest, I don't really see that changing anytime soon. Consider the Palace of Versailles. Oh never mind, heads did roll over that one....."

And that's what makes it ok for the FRS to screw everyone else over. Tell me, have you heard how America started?

 

[WithoutAnyMilk]

Then quite frankly, the Federal Reserve needs to write legislation so that it can. (regulate Bitcoin).

First of all, the Federal Reserve is a private bank. Private banks do not write legislation. Of course, one could argue (as I would) that they can certainly INFLUENCE the writing of legislation.

Second of all, why in the hell would you want an entity that exists only to suck the wealth from nations to control yet another medium of exchange that the commonwealth created to combat the inflationary, fiat paper currencies? Bitcoin is not perfect, so much so that I have never seen fit to use it, but I see the potential in rebellious currencies that go unregulated by the current power structure. Why hand over control of such a thing to a Machine that has proven time and again that it is determined to bankrupt and enslave the people?

 

[WithoutAnyMilk]

(*) If you plot the overthrow of your government by any means, that's considered "treason". A nation's "currency", is the avatar of its physical holdings, and is directly associated with its viability in matters of trade, and so forth. Therefore if you devalue, or attempt to devalue, the currency of any sovereign entity, it could well be described as, "treason".

I would like to take a moment to refer you to the debt clock.
http://www.usdebtclock.org/
So if the Federal Reserve Note is still somehow an "avatar of [our nation's] physical holdings," then we are in real trouble, aren't we? Creating money from thin air to prop up banks, multinational corporations, and the stock market. Manipulating interest rates to keep them artificially low for an extended period so that commercial banks will be more willing to borrow this nonexistent money. The elimination of first the gold coinage itself, and then the paper's backing in gold assets. I'm sorry, but your first point cannot hold water, as there is no value or viability whatsoever in this system.

That being said, I don't trust Bitcoin either, but I see it as a step away from the FRS.

Secondly, you are correct when you say that it is treason to debase or devalue the currency of the people. In fact, that was true beginning in 1792. See: Coinage Act of 1792
The CA-1792 invoked the death penalty for anyone caught debasing the currency, which was originally struck in gold, silver, and copper coins. Face it, man. It's not Bitcoin that is debasing the currency. It's the very banksters throughout history that we have allowed to sink their teeth into our country in the first place. The Federal Reserve is just a manifestation of our own lack of understanding of money, and our own ignorance to the fact that thieves can also wear suits.

 

[captaincranky]

First of all, the Federal Reserve is a private bank. Private banks do not write legislation. Of course, one could argue (as I would) that they can certainly INFLUENCE the writing of legislation.

You're completely syntax and assignation of responsibility for enacting legislation was 100% incorrect. I realized that after I posted it. So, take my meaning to be, "our legislative bodies should take whatever action they deem necessary, as soon as possible , to reinforce our economic system against the imminent threat that Bitcoin presents.

I have no intention of arguing with you on the issue of the US government printing, "play money".

I find myself constantly spouting things on the order of, "If you're the entity responsible for determining national worth, how can you print money, based on the concept that it will potentially exist at some future date uncertain"?

Or, "you can't owe yourself something that never existed in the first place"! Which covers you "debt clock" inference, and you point having been taken, well in advance of you posting it.

(And people look at me like I'm a madman, when I say thing like that. You might give me some pointers on how to get away with it. Either that, or you're as crazy as I am. The jury's still out on that).

Most of what you're ranting about, is a cornerstone of, survivalist mantra. In their case however, they buy property in the middle of Montana, (or somewhere similar), and revert to the barter system, which after all is what our currency represents. Human needs and wants, have long surpassed the ability to make those exchanges on a person to person basis. Enter "currency", the "avatar of trade".

What I'm specifically proposing is, to place a second layer of abstraction on top of the already existing one, (national currencies), is simply compounding the problem, not solving it.

People believe whatever, for whatever reason. I still don't think, "if you click your heels together three times, Dorothy, you'll find yourself back in Kansas, and Bitcoin will be real".

Epilog: Humans have long had the most acute ability to subvert and pervert, the most sublime concepts, using them in furtherance of evil agenda. The Roman Catholic Church is the most salient example, (IMHO). It took the gentle teachings of a "madman", (Jesus ), waged wars in his name, persecuted and tortured and killed individuals in his name, extorted the world's treasure in his name, and returned nothing but a false sense of hope. And then there's the whole raping children nastiness in the process.

OK, so now the Federal Reserve doesn't sound so bad, does it?

 

[WithoutAnyMilk]

(And people look at me like I'm a madman, when I say thing like that. You might give me some pointers on how to get away with it. Either that, or you're as crazy as I am. The jury's still out on that).

Perhaps we may both be nuts, but to differing degrees. I disagree with you, and you disagree with me, which is fine. That's why debate is so popular (although it frequently turns to ad hominem, but I don't think you're the type). I would, however, like to find some common ground here.

That being said, it's fairly presumptuous to foretell another person's ideology. I'm quite aware and accepting of the fact that the barter system is not only flawed, but dead. To support reverting to such a system would take a massive amount of ignorance on my part, and I don't like to be thought of as ignorant. Instead, I believe in a stable medium of exchange. Paper currency, okay, whatever, so long as it is backed by tangible assets that hold value. The dollar of 1913 should have held close to the same value throughout history and into today, but banking institutions desire inflation. Value standards (and legislation like Glass-Steagall) inhibit banks from inflating currency, so they require lobbyists and lawmakers to clear a path. The banks control the wealth, and luckily for them, the souls of men are for sale.

I want to reiterate that I support a stable and honest money system. Yes, it's a pie-in-the-sky dream, because "authority" and "honesty" are positions that rarely intersect. Surely someone as clearly intelligent as you can see that. That's not so extreme, is it?

 

[captaincranky]

Perhaps we may both be nuts, but to differing degrees. I disagree with you, and you disagree with me, which is fine. That's why debate is so popular (although it frequently turns to ad hominem, but I don't think you're the type). I would, however, like to find some common ground here.

That being said, it's fairly presumptuous to foretell another person's ideology. I'm quite aware and accepting of the fact that the barter system is not only flawed, but dead. To support reverting to such a system would take a massive amount of ignorance on my part, and I don't like to be thought of as ignorant. Instead, I believe in a stable medium of exchange. Paper currency, okay, whatever, so long as it is backed by tangible assets that hold value. The dollar of 1913 should have held close to the same value throughout history and into today, but banking institutions desire inflation. Value standards (and legislation like Glass-Steagall) inhibit banks from inflating currency, so they require lobbyists and lawmakers to clear a path. The banks control the wealth, and luckily for them, the souls of men are for sale.

I want to reiterate that I support a stable and honest money system. Yes, it's a pie-in-the-sky dream, because "authority" and "honesty" are positions that rarely intersect. Surely someone as clearly intelligent as you can see that. That's not so extreme, is it?

I fail to understand why you think I disagree with any of the foregoing. Perhaps it's simply different interpretations of syntax and metaphor that is confusing these issues.

What makes our exchanges so ironic is this, we actually disagree on very little. I'm not a fool that thinks we can return to the barter system either. I would however, like to move to Utah, and take on a half dozen wives.

(OK, our last forum software had a "" emoticon, (sarcasm), which I used to get great mileage, great satisfaction, and almost constant usage out of.)

My sole irrevocable point is this; "Bitcoin", is neither the "Holy Grail" of global currencies, nor is it their "messiah".

IMO, it is nothing more another layer of scam, piled on top of the already profuse abundance of scam, corruption, and injustice.

 

[WithoutAnyMilk]

IMO, it is nothing more another layer of scam, piled on top of the already profuse abundance of scam, corruption, and injustice.

Right you may be. It was another manufactured bubble created by the exploitation of people's well-founded fears surrounding global monetary policy. It's hard to strike a balance between supporting a new, "underground" medium of exchange because it creates separation from the promissory note system and keeping in mind that everything is subject to exploitation by greedy people looking to stake their muddy claims.

I wanted to support Bitcoin at first, when it was valued around $0.20. I had a nagging suspicion in those younger years that it would take off, but I opted to do nothing and monitor its growth from a distance. Perhaps that was a mistake on my part, as it eventually grew to over $300 in value per unit before I got sick enough to stop following. I publicly made the same calls on Yahoo! and Chipotle, and executed the same inaction. Holy cow. I just realized I could be wealthy as hell if I had enough sense to take risks.

But on the other hand, I'm happy that I never participated BECAUSE of the risks. It was a fledgling currency that gained its notoriety through the Silk Road drug trade, and I didn't want my name on a list.

Ah, I just fret because it's impossible to live in this world and try to be an honest man without constantly combating thieves and con-men. Did you see the picture of Mt. Gox CEO Mark Kerpeles here on TechSpot (here), smiling big and holding his Bitcoin in the article about his bankruptcy protection claim? Something about seeing that makes me wonder how many people had to lose to put that lazy smirk on his face.

 

[havok585]

You're completely syntax and assignation of responsibility for enacting legislation was 100% incorrect. I realized that after I posted it. So, take my meaning to be, "our legislative bodies should take whatever action they deem necessary, as soon as possible , to reinforce our economic system against the imminent threat that Bitcoin presents.

I have no intention of arguing with you on the issue of the US government printing, "play money".


Epilog: Humans have long had the most acute ability to subvert and pervert, the most sublime concepts, using them in furtherance of evil agenda. The Roman Catholic Church is the most salient example, (IMHO). It took the gentle teachings of a "madman", (Jesus ), waged wars in his name, persecuted and tortured and killed individuals in his name, extorted the world's treasure in his name, and returned nothing but a false sense of hope. And then there's the whole raping children nastiness in the process.

OK, so now the Federal Reserve doesn't sound so bad, does it?

For this forum's sake, stop talking about entities that u think u know so well (which u dont at all) and then stain them with some actions some bad figures did in the past, one overused, clicheé opinion u got there, boy.

 

[captaincranky]

For this forum's sake, stop talking about entities that u think u know so well (which u dont at all) and then stain them with some actions some bad figures did in the past, one overused, clicheé opinion u got there, boy.

An opinion which, by the way, I'm well entitled to.

By the way, (again), how does someone with 71 posts, (ostensibly most of which are in the TS news and comments section), get to determine the direction of, or what's good for this forum, anyway?

Or are you just trying to create, "havok"....? "Havok-ing a troll-trum, maybe"?

 

[havok585]

An opinion which, by the way, I'm well entitled to.

By the way, (again), how does someone with 71 posts, (ostensibly most of which are in the TS news and comments section), get to determine the direction of, or what's good for this forum, anyway?

Or are you just trying to create, "havok"....? "Havok-ing a troll-trum, maybe"?

Sorry for my rant earlier, I was in a very bad mood, dunno what got of me, as u said, different ppl have different opinions, true dat.