Not too long ago, bitcoin endured something of a comeback, hitting the $40,000 mark for the first time in well over a month. While the price didn’t last, the currency is still in the high $30,000 range, which is considered a step forward in the right direction given how poor bitcoin was doing before, but with the new infrastructure bill making its way into the United States, many analysts and traders are worried that things could potentially begin to fall again, as the new bill is spelling doom in many ways for crypto fans.
The New Infrastructure Bill Is Leading to Some Raised Eyebrows
The infrastructure bill has been at the center of some controversy over the past few days given that it has somehow garnered approval without being fully written. This alone is something of a strange conundrum; how can you feel positive towards something when it is not fully finished? Either way, many members of the American Congress are looking to add further verbiage that would allow them to tax crypto investors even further so that they can fund both power and transportation systems.
It is estimated that new crypto taxation placed into the bill could garner as much as $28 billion in additional funds for these projects. The operation is something of a two-sided coin in many ways. On the one hand, these systems do need to be upgraded and fixed, but on the other, aren’t crypto transaction artists taxed enough?
Many analysts are taking issue with the new bill and say that it could potentially “kill” the crypto industry in the coming future. Jake Chervinsky, for example, is a crypto-focused attorney who has been very vocal regarding his opposition to the bill. In a recent interview, he stated:
This is a deeply misguided provision that, if adopted, will do far more harm than good to U.S. interests.
The new provision would also require any crypto brokers (this includes cryptocurrency exchanges) to obtain far more information on their users than what is presently collected, meaning traders’ identities and privacy could be threatened in the long run. A portion of the document reads:
The provision includes updating the definition of broker to reflect the realities of how digital assets are acquired and traded. The provision further makes clear that broker-to-broker reporting applies to all transfers of covered securities within the meaning of section 6045(g)(3), including digital assets.
It’s Not Even Fully Written
Hope exists, however, in that the bill is not complete, and thus things could potentially change down the line. Chervinsky explained:
Things are moving fast, which can feel scary. Don’t panic. This provision isn’t final yet and still can be changed… It defies logic to adopt a regulation for which compliance is literally impossible unless the goal is to kill the industry. This could mean a de facto ban on [crypto] mining in the USA.