The post The FAIR Act Would Protect Bitcoin Holders appeared on BitcoinEthereumNews.com.

A few weeks ago, we briefly touched on how civil asset forfeiture may apply to Bitcoin, a process in which the Government may seize citizen’s assets without accusing a person of a crime. With the US Government stating that civil asset forfeiture will form a key pillar in building its Strategic Bitcoin Reserve, the Fifth Amendment Integrity Restoration Act of 2023, also known as the FAIR Act, is arguably the most important Bill introduced in Congress today to protect Bitcoin holders from extensive Government overreach. Without it, many may see their bitcoin seized and forfeited on behalf of the Reserve with little to no recourse. Civil asset forfeiture has long been argued to be in need of drastic reform. Across the country, states have become known to abuse the process to enrich their own law enforcement agencies, which may appropriate the funds collected. From police seizing a Vietnam veteran’s van for serving as a “container” for marijuana, or attempting to appropriate a man’s life savings over a seat belt violation, civil asset forfeiture is “one of the gravest abuses of power in the country today,” according to the Institute for Justice. Civil asset forfeiture is particularly problematic as the process creates a financial incentive for law enforcement to forfeit citizen’s property to the Government without due process, as stated by the ACLU. Especially in light of bitcoin’s scarcity and its consequent value appreciation over time, this financial incentive is only exacerbated when civil asset forfeiture is applied to build the Strategic Bitcoin Reserve. To protect citizens from civil asset forfeiture abuse, the FAIR Act of 2023, which was reintroduced in 2024 co-sponsored by Sen. Lummis, among others, aims to revise the federal laws that govern the process to ensure that civil asset forfeiture proceedings follow due process as governed by…

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Filed under: News - @ March 21, 2025 4:25 pm