Jeff Sessions Concerned with the Use of Bitcoin
RegulationBit News Today2 min read
"I don't own any of this bitcoin," Sessions said while speaking at a press conference in D.C. on Wednesday. "I don't know anything about it, except that it's been used to buy illegal drugs and other illegal things."
But Sessions, the former junior senator from Alabama, went on to say he is learning more about it. "We just have to be aware of how it is moving and what it's doing and how it's being used in terms of crime." ## Bitcoin Use in Illegal Activity
While law enforcement agencies have been concerned about the use of cryptocurrencies in illicit activity for some time, this is the most explicit statement on the subject by a top-ranking Trump administration official. Sessions is a key ally of the President and his statements carry more weight than those of other Cabinet members.
Cryptocurrency use cases in illicit activities are well known and have been widely covered by Bit News Today and numerous other publications. In a more recent example, a North Korean-based group is suspected of using a cryptocurrency exchange - Bithumb, one of the world's largest exchanges - to launder stolen funds. ## Sessions's Comments Do Not Specifically Name Any Crypto
These realities are why Sessions's statements, while more general, have a clear link to past events. "Cryptocurrencies like Bitcoin can be used to facilitate online crimes, including fraud and identity theft," Sessions said. "The Federal Bureau of Investigation (FBI) is actively investigating cases involving these concerns, and we're going to continue to focus on that."
The Attorney General's comments do not specifically mention a single crypto other than Bitcoin. He did say, however, that "the Department of Justice (DOJ) will continue to monitor these emerging technologies for criminal exploitation."
Cryptocurrencies, and Bitcoin in particular, are known for being decentralized, and many industry proponents argue that this is a central tenet of their value. This decentralized nature is also what allows them to be used for illicit activities, including payment and money laundering. But advocates also argue that the widespread availability of other payment systems - like Venmo, PayPal, and traditional bank accounts - make it difficult to pinpoint cryptocurrencies as a root cause of illicit activity. ## Impact on the Crypto World
So far, Sessions's comments have had a minimal impact on the price of Bitcoin. Several exchanges, including Coinbase, are not headquartered in the United States, and operate without U.S. regulatory oversight. This could be one area of growth in the future if there is a crackdown on cryptocurrencies in the United States, but Bit News Today does not have any information to indicate that this is on the horizon.
In addition to Sessions's comments, the digital asset industry has been surprised by recent reports that the Internal Revenue Service (IRS) is investigating Coinbase, one of the largest U.S. exchanges. To date, several exchanges have received subpoenas from the IRS, and the agency is seeking information about the identity of customers and transactions.
