Will bitcoin get banned!??!

A US senator is asking the federal government to take this remarkable step: completely ban Bitcoin.
Joe Manchin, a Democratic senator representing West Virginia, sent a letter Wednesday to the Treasury Department, the Federal Reserve, along with other regulators characterizing the virtual currency as encouraging “illicit activity” as well as being “highly unstable and disruptive to our economy. ”
Manchin, who is an associate of the Senate banking committee, suggested in the letter — titled “Manchin Demands Federal Regulators Ban Bitcoin” — that a complete prohibition was appropriate because Thailand, China, and South Korea have previously enacted severe restrictions or bans of these own.
It’s unlikely that the Federal Reserve and the executive branch contain the statutory authority to prohibit Bitcoin with out a new law enacted by Congress and signed by the president — making Manchin’s letter something of a publicity stunt. On the other hand, regulators likely do have the authority to levy more rules and restrictions on Bitcoin-related businesses that could increase costs, decrease interest among investors, and, at the margin, put some startups out of business.
Manchin and fellow Senate Democrat, Charles Schumer of New York, have targeted Bitcoin-related enterprises before. In a June 2011 letter to the Justice Department and DEA, the senators demanded a crackdown on the web marketplace Silk Road, saying: “The only method of payment for these illegal purchases is an untraceable peer-to-peer currency known as Bitcoins. ”
The letter might not have been accurate — Bitcoin is more traceable than many people realize — but it had the required effect. Last fall the FBI indicted a San Francisco man for allegedly operating Silk Road, and extra charges were levied this month.