Bitcoin Raises Questions on Capitol Hill

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Nov. 18 (Bloomberg) -- Congress debates virtual currency and regulating Bitcoin. Bloomberg’s Peter Cook reports on Bloomberg Television’s “Money Moves”. (Source: Bloomberg)

Congress takes an interest.

That is usually a bad sign for the market.

That may be -- that may not be the case with bitcoin.

A legitimacy has been added that has not been there before.

If you have arrived here in capitol hill that is the message we are getting from supporters.

This is the first time congress has looked into virtual currency.

The first is going to take place in the senate homeland security committee.

One is the ceo jeremy allaire.

We are in the first days of this technology.

I am encouraged by the engagement and attention we are seeing from lawmakers.

This is a fundamental phenomenon.

Lawmakers are going to be hearing directly from federal law enforcement officials about the doctor side of bitcoin -- the darker so it -- darker side of bitcoin.

Just last month, the government shut down the silk road website, that is an amazon like marketplace for drugs.

$1.2 billion in transactions in bitcoins took place.

It is the darker side that has washington worried.

Even as federal law enforcement officials were set to testify, we will highlight the upside of bitcoin.

They would like to make sure it is watched carefully for bad actors.

What about regulating bitcoin?

It is being regulated right now.

No one knows where it fits.

The lead agency so far has been the treasury department's unit, the financial crimes network.

It issued some guidance back in march, requiring bitcoin administrators and exchangers to register with the government.

There have been some questions about how to treat transactions in terms of tax purposes.

Both businesses and individuals would like to know where that is standing coming soon.

This text has been automatically generated. It may not be 100% accurate.

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