[Commoner’s Corner] September, 2019
By: Liam, Cypher Core
Tags: Bitcoin, Blockchain, Crptocurrency, Crypto, Cyphercore

Bitcoin laws in the US

Everyday Bitcoin becomes more and more accepted and used by people all around the country. With this popularity comes an increase in government interests and how they could potentially utilize this asset in these changing times. Already around the United States people opting in to receive their paychecks in Bitcoin, in select states many are even paying their taxes with Bitcoin. Bitcoin has always and will always be aimed for a use case scenario where everyone around the world can/will use Bitcoin as a form of payment. With this scenario, it is only inevitable that governments too, want their share and their own laws to keep people safe from themselves.

In the United States, Bitcoin is off to a wonderful start by getting the government involved with finding utilization for this growing asset. While it not being legal tender at the moment, it is still not illegal to use it as a form of currency with select retail providers. Most of this meaning that it is legal for you to use your own Bitcoin to buy and sell items and have bitcoin accepted as a fair value market asset. So private sellers and buyers are legally allowed to transact payments with this form of currency, but if you do decide to start a business with it as the backbone to the revenue model exceeding a certain you’ll encounter a significant amount of pushback from the government. In 2011 the FBI along with the US government made a ruling on online gambling, with it being illegal to gamble online with a form of legal currency. This was all due to a major oversight of money laundering and bank frauds. With this, opened up the world of online gambling with Bitcoin, and while bitcoin not being an illegal tender more and more people shifted to the underworld of Bitcoin gambling. With earning Bitcoin whether it be with online gambling or trading on an exchange came the dark horse, reporting your earnings with very confusing terms for the average consumer. While not being a legal tender exactly, Bitcoin became ruled as an asset you still must report any earnings you make to the IRS.

California is one of the more progressive states in the United States in terms of accepting and adopting Bitcoin as a form of currency as well as introducing laws themselves. California is aiming to be one of the first states to fully legalize Bitcoin companies by introducing a new law in their senate. In the new bill, they outline the guidelines in order for a Bitcoin company to become a legal business such as implementing money laundering and anti-theft programs in the company.

With me, I see all these new laws and increasing laws as a good sign of mass adoption. When the governments start wanting to control the laws regarding what Bitcoin is and can do, you feel a sense of satisfaction knowing your views are headed in the right direction. Some may see the government legalizing it so quickly is so that they can control it, to which I say that may be true but there is no complete way to control it as Bitcoin outside of purchasing it outright. All over the world countries are slowly starting to realize that cryptocurrency and Bitcoin have something unique to offer to the world. It’s only a matter of time before world adoption and so far the United States is showing signs of being a real cryptocurrency powerhouse.

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