thecoinrepublic.com
- The fear factor is still ruling in the psyche of crypto traders
- The $550 billion bipartisan infrastructure bill is slowly making its way through the U.S. legislature
- Includes a provision to raise $28 billion from crypto investors
The fear factor is ruling Among Bitcoin, Ethereum, BNB, XRP and Dogecoin Traders Even As the Market Soars toward A $1.7 Trillion Price.
Bitcoin and cryptocurrency prices have surged this weekend, and BTC has made substantial gains of over $40,000. BTC prices touched $43,000 last night. It is the highest since mid-May and almost $10,000 higher than the price of BTC the previous week.
Ethereum price is leading the price surge in the cryptocurrency market for the last 24 hours. Traders are optimistic and eyeing$3,000 per ether token. The total cryptocurrency market has added $250 billion over the previous week and is now nearing $1.7 trillion.
However, the fear factor is still ruling in the psyche of crypto traders. The $550 billion bipartisan infrastructure bill is slowly making its way through the U.S. legislature. The bill also includes a provision to raise $28 billion from crypto investors. Many experts feel that it will spell a death knell for the industry.
Bill has been made with misguided intentions
Jake Chervinsky, a crypto-focused lawyer, wrote in a lengthy Twitter thread how the bill would spell the death knell for the burgeoning crypto industry and market. Unfortunately, the bill has been made with misguided intentions and, if adopted, will do more harm than good for the U.S. interest.
The bill has cleared a preliminary Senate vote. The bill proposes to tax cryptocurrency and Bitcoin profits to fund U.S. infrastructure investment. The bill also envisages crypto exchanges and wallet providers to collect far more information about their users than they currently do.
Under the modified information reporting regime, any transfers of digital assets made by any broker will have to be filed as returns. The bill also includes updating the definition of a broker to amalgamate the realities of how digital assets are acquired and traded. The bill also states that broker-to-broker reporting applies to all transfers of covered securities within the meaning of section 6045(g)(3), including digital assets.
Virtually impossible to regulate an industry which thrives on decentralization
Chervinsky warned that things are happening very fast and are scary. However, he added that the provisions are not final, and there is still a window of opportunity to make changes. Describing the bill as illogical, Chervinsky said that it is virtually impossible to regulate an industry that thrives on decentralization unless the goal is to kill the cryptocurrency industry in the U.S., and this could mean a de facto ban on [crypto] mining in the USA.
Bitcoin mining was done mainly in inland China. However, since the crackdown on Bitcoin mining activities started in China, miners have relocated to more friendly locations. The U.S. had emerged as a potential new home for the miners. States like Texas and Florida were deemed some of the places where Bitcoin mining can flourish. However, a section of lawmakers who feel that bitcoin and crypto mining could accelerate climate change have signaled they’re unhappy with the industry’s U.S. growth.
Bitcoin and Crypto proponents contend that the language used in the bill that broadens brokers’ definition will also include those that provide hardware and software. Jerry Brito, the executive director of Washington D.C.-based crypto think tank Coin Center, said via Twitter that the drafts would force categories of persons to report is so broad that it potentially covers persons who only provide software or hardware to customers but have no visibility whatsoever into user transactions. It will also include miners’ indexes. The saving grace is that arguably miners’ indexes, for that matter, do not have customers as defined by the tax code.