Although cryptocurrencies have long gained prominence as a stand-alone political issue, they sometimes get entangled with the broader dynamics of the regulatory process. The infrastructure bill (a key pillar of the Biden administration’s economic agenda) was suddenly passed in the US House of Representatives last Friday, despite the initial approval of the Democrats in Congress to first vote on the party’s other legislative priorities. After approval with 228 votes in favor and 206 against, the bill goes to the office of President Biden. In addition to approving massive spending on roads, bridges, and broadband internet access, it includes a handful of key provisions related to digital assets that haven’t changed since the cryptocurrency community openly protested its inclusion in the bill.
As daunting as it may be, this setback is not irreversible: crypto advocates have not yet exhausted the full range of tools available to challenge contestable financial regulatory and tax reporting regulations.
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Better roads, more surveillance
The definition of “broker” in relation to an entity that facilitates cryptocurrency transactions as part of the tax return is perhaps the main problem that proponents of cryptocurrencies have encountered in the language of the Infrastructure Act. The concern is that the definition as it stands may include actors such as node operators or protocol developers who require them to disclose information about transaction counterparties to which they do not have access, which would make it impossible to comply. However, it is up to the Treasury Department to set the precise rules for applying the standard, which leaves the cryptocurrency industry leeway to negotiate more sensible terms.
Another problematic clause later brought to our attention is regulation 6050I, which sets extensive monitoring requirements for those receiving $ 10,000 or more in cryptocurrency. Many observers have called the rule unconstitutional, including Coinbase CEO Brian Armstrong, who rated of “disaster”.
Career of the mayor paid in cryptocurrency
In the meantime, New York City will have its first bitcoiner mayor. New York state has long been known as a difficult jurisdiction for cryptocurrency companies, but things could improve once Eric Adams takes office on the first day of 2022. One of the first statements by the mayor-elect was a promise to make New York a pro-crypto destination, nurture talent for industry-related jobs, remove barriers to growth, and even consider a city-owned currency project similar to MiamiCoin. . Even if Adams’ endorsement of Bitcoin was limited to the public realm, having a senior official from one of the world’s leading financial centers to drive the cryptocurrency agenda is still a huge win for the industry.
What about spot Bitcoin ETFs for when?
Representatives Tom Emmer and Darren Soto, the strong hearts of the cryptocurrency industry, have appointed the chief of the Securities and Exchange Commission, Gary Gensler, to approve applications for exchange-traded funds based on Bitcoin spot instead of futures contracts because of the agency’s apparent reluctance to approve. got into trouble the capital. The main point of his letter to Gensler is that the regulator’s argument that derivative-based products offer investors stronger protection than those that follow spot prices is not valid.