The price of bitcoin climbed to nearly $ 43,000 per bitcoin last night, its highest since mid-May and nearly $ 10,000 more than its price around the same time last week. Meanwhile, the price of ethereum has driven the cryptocurrency market higher over the past 24 hours, with traders targeting $ 3,000 per ether token. The combined crypto market has added $ 250 billion over the past week and is now hovering around $ 1.7 trillion.
However, many crypto traders are feeling increasingly nervous over the $ 550 billion bipartisan infrastructure bill that is currently making its way through the U.S. legislature and includes a provision to raise $ 28 billion from the government. of crypto investors, with some Attention it could “kill” the industry.
sign up now for free CryptoCodex–Join the tens of thousands of others who are receiving the CryptoCodex newsletter every day of the week. Help you understand the world of bitcoin and cryptocurrency, arriving in your inbox at 7:00 am EDT
“This is a deeply flawed provision which, if passed, will do much more harm than good to American interests,” Jake Chervinsky, a crypto lawyer, wrote in un long Twitter thread explaining how the bill could impact the burgeoning crypto industry and market.
The bill, which passed a preliminary Senate vote this week, proposes to tax profits from bitcoin and cryptocurrency to fund investments in U.S. infrastructure, with the definition of a broker being broadened to the extent that crypto exchanges and wallet providers would need to collect a lot more information about their users than they currently do.
Any broker who transfers digital assets should file a report under an amended information reporting regime, according to a draft copy of the bill seen by Cash.
“The provision includes updating the definition of broker to reflect the realities of how digital assets are acquired and traded,” the document said. “The provision further clarifies that the broker-to-broker statement applies to all transfers of covered securities within the meaning of Section 6045 (g) (3), including digital assets. “
“Things are moving fast, which can be scary,” Chervinsky wrote, adding “don’t panic. This provision is not yet final and can always be modified ”.
Chervinsky warned that “he defies logic to pass regulations whose compliance is literally impossible, unless the goal is to kill the industry,” and “that could mean a de facto ban on [crypto] mining in the United States.
Since the crackdown on bitcoin and cryptocurrency mining in China in recent months, in which those who use powerful computers to secure blockchains and validate transactions in exchange for new crypto tokens have been kicked out of the country, the United States has become a potential new home for many.
However, lawmakers who fear bitcoin and cryptocurrency mining could accelerate climate change have indicated they are unhappy with the growth of the industry in the United States.
CryptoCodex—A free daily newsletter for the crypto-curious. Help you understand the world of bitcoin and crypto, every day
Bitcoin and crypto experts warn that the language used in the bill risks broadening definitions of brokers to the extent that it includes those who provide hardware and software.
“Unfortunately, in the drafts we saw that the categories of people who would be required to report are so broad that they potentially cover people who only provide software or hardware to customers, and who have no visibility into user transactions, ”Jerry Brito, executive director of Washington DC-based crypto think tank Coin Center, said via Twitter, adding that he was trying to “fix” the crypto provision of the bill.
“This potentially also covers the miners ‘indexes, the positive point is that the miners’ indexes elsewhere probably do not have clients as defined by the tax code. “