The Regulatory Threat to Bitcoin with Jason Brett - WBD649

Jason Brett is a former FDIC regulator who worked through the
2008 Global Financial Crisis. In this interview, we discuss the
Restrict Act, a proposed piece of US legislation that could
enable the Secretary of Commerce to shutter access to Bitcoin. We
also talk about Operation Chokepoint 2.0, the banking crisis, and
whether Bitcoin is a threat to the banks.


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Last month, a bipartisan group of United States senators
introduced a bill called “Restricting the Emergence of Security
Threats that Risk Information and Communications Technology Act”,
which is being referred to as the RESTRICT Act. Principally aimed
at mitigating foreign technology threats, the legislation would
empower officials to police and restrict Americans' domestic
access to a range of technologies, including Bitcoin.


Whilst not principally aimed at cryptocurrencies (it has been
drafted with the aim of banning companies like TikTok from the
United States), the bill has been widely criticised for its broad
language. It would enable the secretary of commerce to take
action against any information and communication technology
connected to a foreign adversary that posed “undue or
unacceptable risk”.


The US has recent experience of the original intent of laws being
stretched to limit American citizens' rights: the 2001 Patriot
Act has been used for increasingly pervasive monitoring and
surveillance of Americans that included the implementation of
bulk data collection programs by the NSA affecting millions of
people.


The issue at hand is that Bitcoin presents a real and present
danger to the Fed: it is both a viable alternative to commercial
banks, and Treasury debt as a global reserve asset. History shows
decision makers will use any tool available to restrict what they
view as an undue and unacceptable risk. Whilst Bitcoin is not the
primary target of the Restrict Act, it is feasible that one day
it may be used to stop access to Bitcoin for Americans. Prepare
accordingly.