U.S. Department of the Treasury currently states that: “Virtual currency is a digital representation of value that functions as (i) a medium of exchange; (ii) a unit of account; and/or (iii) a store of value; is neither issued nor guaranteed by any jurisdiction; and does not have legal tender status in any jurisdiction.”
At the same time, Article I, Section 8, Clause 5 of the United States Constitution delegates to US Congress the power to coin money and to regulate the value thereof. This power was delegated to Congress to establish and preserve a uniform standard of value and to insure a singular monetary system for all purchases and debts in the United States, public and private. Along with the power to coin money, the United States Congress has the concurrent power to restrain the circulation of money which is not issued under its authority to protect and preserve the constitutional currency for the benefit of all citizens of the nation.
Question 1: Does the US Department of the Treasury consider the distribution of Virtual Currencies legal within the United States borders?
Question 2: Does operation of, production of, and distribution of Virtual Currencies conflict in any way with the US Department of the Treasury’s task of circulating and maintaining the constitutional currency of the United States?
U.S. Department of the Treasury, why don’t you explain this to me like I’m five?