Blockchain Bites: Trump on Bitcoin, Powell on Digital Dollars and the Truth About Terrorist Financing

The Washington Examiner published an excerpt of John Bolton’s new book detailing a dramatic scene in which President Trump told Treasury Secretary Mnuchin to go after bitcoin before tackling trade with China.

This news follows a report from the Drug Enforcement Administration (DEA) showing how the agency failed to properly oversee crypto investigations, and Fed Chair Jerome Powell’s statement that a “digital dollar” should be investigated. Here’s the story:

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Who Watches the Watchdogs?
The DEA failed to adequately police its undercover agents’ handling of cryptocurrency, according to the U.S. Department of Justice’s Office of the Inspector General (IG). “The DEA’s management of virtual currency-related activities was insufficient due to inadequate headquarters management, lack of policies, inadequate internal control procedures, insufficient supervisory oversight and lack of training,” the IG wrote. Elsewhere, President Donald Trump ordered Treasury Secretary Steve Mnuchin to focus on a clampdown on bitcoin over negotiating a trade with China, according to an excerpt from former National Security Advisor John Bolton’s new book.

Officials Weigh In
Federal Reserve Chair Jerome Powell, speaking before the House Financial Services Committee, said the idea of a digital dollar should be taken seriously, adding later, “this is something that the central banks have to design… The private sector is not involved in creating the money supply, that’s something the central bank does.” Elsewhere, Chris Giancarlo, former chair of the U.S. Commodity Futures Trading Commission, said XRP is more like an alternative currency than a security. He argued Ripple Labs hadn’t violated any U.S. securities regulations and should have…

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