Open Letter to Cong. Steve Stockman: Virtual Currency Tax Reform Act Not A Good Idea

April 8, 2014

An Open Letter To Congressman Steve Stockman

Bitcoins are software - This is merely a marketing image.
Bitcoins are software – This is merely a marketing image.

Honorable Steve Stockman
326 Cannon House Office Building
Independence Avenue
Washington, D.C. 20515

Subject: Your proposed “Virtual Currency Tax Reform Act”

Bitcoin is not in any sense a “virtual currency”, regardless how it is labeled. It is as much a financial transaction as are the use of credit cards, but it cannot be legally considered nor treated as lawful currency. Here’s why.

As per the U.S. Constitution, Article 1, Section 8, Clause 5, Congress has authority “To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures”.

Bitcoin value is a function of supply and demand, just like gold, wheat, gasoline and oil. Therefore, bitcoin is a commodity that is freely traded over the internet between willing buyers and sellers and not the property of any one government, except the natural government of a free market. If you wish to legally define it, for one reason or another, I suggest calling it “private property”.

Whereas, bitcoin is a commodity and whereas Congress does not and cannot “regulate the Value thereof”, your proposed bill can only be considered meaningless.

As a TEA Party organizer in my part of Texas and as an active Republican who is a delegate to the Texas GOP Convention, I encourage you to withdraw your proposed “Virtual Currency Tax Reform Act” to avoid embarrassment. Your work to preserve traditional values is greatly appreciated and I read everything you publish on Facebook.

Respectfully,

John White
Rockwall, Texas
Rockwall.Conservative@gmail.com

CC:

Congressman Ralph Hall (TX- CD4)
104 N. San Jacinto St.
Rockwall, TX 75087-2508

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