Library of Congress: Report on Bitcoin’s Legal Status

Library of Congress

The Law Library of Congress has been studying bitcoin and how it is being viewed and put into effect across the world. 40 jurisdictions along with the European Union have been surveyed to see which rules have been set in place for the digital currency.

The Library of Congress is America’s oldest federal institution and holds all of the research conducted by Congress.

The United States holds the largest population of bitcoin users, so it comes as a no surprise that such study began in the States.

Many of the world’s governments each have their own implementation of bitcoin. Some may regulate it, while others view it as a passing fad. The Library of Congress’ job is to find out the structure of how bitcoin is used, and why it is used differently in each part of the world.

Bitcoin regulation is such a new phenomenon that most government officials have no idea what to do with it. Many question how to tax it, while others might rather just want to ban it all together.

There may never be an absolute worldly law in regards to bitcoin, but a basis on how to operate with it may come in fruition.

According to the Library of Congress’ report:

“Overall, the findings of this report reveal that the debate over how to deal with this new virtual currency is still in its infancy.”

Regulating Bitcoin

Regulations can either stand in favor of bitcoin or stunt its growth. Depending on what bitcoin users can legally do dictates instances that it can be put to the test.

New York is currently in the midst of figuring out what regulations could best conform to the needs of its bitcoin community. Regulations may not necessarily be the same between each American state, but each will do what they feel is right for the state’s benefit. The same will occur for each individual nation.

Senator Tom Carper, chairman of Homeland Security and Governmental Affairs Committee believes that the US may be a trailblazer for other nations to follow in terms of the digital currency.

“In fact, the United States might be leading the way for a number of nations when it comes to addressing this growing technology.” 

In addition, though some regulations may be unpopular while others favorable, they can always change in time. What is good for one country may not be so for another, and what works well in one time period may not work well in the future.

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