Bitcoin and Cryptocurrency Prices Soared This Weekend With Bitcoin Price Gaining Over $40K (Sign Up Now Forbes CryptoAsset & Blockchain Advisor and discover eligible cryptocurrencies for 1,000% gains).
Bitcoin price surged to nearly $43,000 per bitcoin last night, its highest level since mid-May and nearly $10,000 above its price this time last week. Meanwhile, the price of Ethereum has driven the cryptocurrency market higher in the past 24 hours, with traders eyeing $3,000 per Ether token. The combined crypto market added $250 billion over the past week and is now approaching $1.7 trillion.
However, many cryptocurrency traders are increasingly nervous about the $550 billion bipartisan infrastructure bill that is currently making its way through the US legislature and includes a requirement to raise $28 billion from crypto investors, with some warning It can “kill” the industry.
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“This is an extremely misleading provision that, if adopted, would do more harm than good to the interests of the United States,” wrote Jake Chervinsky, a lawyer who specializes in cryptocurrency. Twitter is long A thread showing how the bill could affect the booming crypto industry and market.
The bill, which passed this week for a preliminary vote in the Senate, proposes taxing bitcoin and crypto earnings to fund investment in US infrastructure, while broadening the definition of a broker to the point where crypto exchanges and wallet providers need to gather more information about them. of users currently.
Any broker that transfers any digital assets will need to file a return under a modified information reporting system, according to a draft copy of the invoice it sees Quindisk.
“The ruling includes updating the definition of the broker to reflect the realities of how digital assets are acquired and traded,” the document said. “The judgment further clarifies that broker-to-broker reporting applies to all transfers of securities covered within the meaning of Section 6045(g)(3), including digital assets.”
“Things move quickly, which can feel frightening,” Chervinsky wrote, adding, “Don’t panic. This verdict is not yet final and can still be changed.”
Chervinsky cautioned that it “challenges logic to adopt a regulation whose compliance is literally impossible, unless the goal is to kill the industry,” and “this could mean a virtual ban on [crypto] Mining in the United States.
Since China’s crackdown on bitcoin and crypto-mining in recent months – in which those using powerful computers to secure block chains and validate transactions in exchange for new crypto tokens were driven out of the country – the US has emerged as a potential new home for many.
However, lawmakers who fear that mining bitcoin and cryptocurrency could accelerate climate change have indicated that they are not satisfied with the growth of the industry in the United States.
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Bitcoin and cryptocurrency experts warn that the language used in the bill risks widening the tariffs for intermediaries to the point of including those who provide hardware and software.
“Unfortunately, in the drafts, we’ve seen that the categories of people who would be obligated to report are so broad that it will likely include people who only provide software or hardware to customers, and who have absolutely no insight into user transactions,” Jerry Britto, executive director of the think tank. Crypto Coin Center in Washington, DC, said via Twitter, adding that he was trying to “fix” the invoice encryption requirement.
“It is also likely to cover miners’ indices, and the saving grace is that miners’ indexes for that matter do not have clients as defined by the tax code.”