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Congressman Bill Foster of the United States has stated that in some instances, judges should be permitted to reverse crypto transactions.
Some members of the community have criticized this, claiming that this would be impossible on top blockchains, which require miners to collaborate in order to launch a 51 percent attack.
Bill Foster, a member of the US Congress, has proposed that the government be given the authority to reverse specific crypto transactions. The Illinois Democrat and co-chair of the House blockchain ‘caucus’ displayed his lack of understanding of the matter by claiming that legislation is needed to empower federal courts to identify crypto users and reverse some Bitcoin transactions.
Continuing the narrative that Bitcoin and other big cryptocurrencies are mostly used to aid criminal activity, Foster urged for legislation that would allow third parties to “go to a court to unmask individuals under certain circumstances.” He went on to say that cryptocurrencies should be “pseudo-anonymous” so that regulators can see when the network is hacked.
To reverse a transaction in Bitcoin, miners must collaborate and conduct a 51 percent attack. Surprisingly, this was briefly mentioned by Binance CEO Changpeng Zhao after the exchange was hacked back in 2019. Zhao proposed’reorganizing the blockchain,’ which would allow the stolen Bitcoin to be reversed. Major influences, including Mike Novogratz and Ari Paul, promptly knocked down the concept.
Foster has asked for the creation of new tools that will allow the government to track down specific users and transactions. His remarks come in the wake of an uptick in ransomware attacks employing cryptocurrencies. Regulators have identified this as a significant issue. Since then, CNBC’s Jim Cramer has indicated that the market may see several government agencies work together to combat the growing tendency. Furthermore, there has been a growth in the use of digital assets, with most investors being concerned about the overall trend.
Most consumers will desire the security blanket of a trustworthy third party who can address the problem if they have a significant portion of their net worth invested in crypto assets.
Senator Cynthia Lummis is an advocate for the Buy and Hold policy.
Foster, who is largely in favor of cryptocurrency adoption, feels that the government should make better legislation. “There’s a growing view in Congress that if you’re involved in an anonymous crypto transaction, you’re a de-facto participant in a criminal conspiracy,” he continued.
Senator Cynthia Lummis, by the way, has endorsed Bitcoin as a retirement strategy. The Senator highlighted to CNBC that Bitcoin was a wonderful choice for investors looking to diversify their holdings.
“I’m concerned about having all of our retirement funds in US currency. “I think one of the strongest stores of wealth for the long term is bitcoin,” the Bitcoin-friendly Senator continued, “as part of diversification, having a highly diversified asset allocation, you don’t have all your eggs in one basket.””
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