Co-chair of the Blockchain Conclave wants to reverse cryptocurrency transactions June 30, 2021

Bill Foster, Representative Democrat and co-chair of the Blockchain Caucus of Congress, has called for a regulatory framework to be developed that would allow third parties to reverse fraudulent or criminal transactions.

Foster is a physicist and Democrat from Illinois. The blockchain caucus was jointly run by Democratic MP Darren Soto and Republican MP Tom Emmer and David Schweikert.

During an online event for Axios news agency, Foster stated that if Congress or the public can’t find another solution to ransomware, US regulators need to put in place a legal framework for wallet holders and return the crime

Democrats have named the legality of unwinding transactions as one of the “most fundamental decisions about crypto assets” and stated that regulators need to ask:

“Is there a court where you can expose the participants, but also a trusted third party or court that you can go to to reverse fraudulent or erroneous transactions?”

The 65-year-old noted that while his comments will “drive crypto purists into a frenzy,” those who value anonymous and untraceable transactions are the core characteristic of cryptocurrencies, those who hold a large portion of their net worth in digital assets, ” want to have a trusted third party security layer that can solve the problem. ” “

Of course, the news has puzzled crypto purists, with a thread about Foster’s comment on the “r / CryptoCurrency” subreddit that sparked a negative reaction today.

User “DepNeanderthal” commented that “Anyone who trusts the ‘trusted third party’ of this guy is mean. Government and trust are as close to one another as they are at the North Pole and the South Pole. “

While user “Justin534” noted that it “is literally impossible unless governments attack the network. Something they can really do. “

Foster just seems to want the power to be used on an exceptional basis. Speaking to Axios about China’s regulatory approach to crypto, which has essentially banned the entire sector, Foster noted that the US needs to find a common ground and a more balanced approach where anonymity under normal circumstances is “99.9% of time ”is respected.

“But on the rare occasion that something fraudulent, criminal, or improper conduct occurs like it did, you need to be able to detect and possibly reverse those transactions,” he repeated.

Connected: Non-partisan law to research blockchain and cryptocurrency passed in the US House of Representatives

The use of cryptocurrencies to facilitate criminal activity appears to be a major issue for Foster, and he stressed in an April 5 media release that a lack of regulation is leading to new behavior.

“One of the border officials told me that most human trafficking payments are now made in Bitcoin, simply because it is legally incomprehensible.”