Despite that the cryptocurrency If prices are turning green today, we may see less positive developments in crypto regulations if bitcoin (BTC) in ethereum (ETH) in the United States.
The US government wants to take as much as $28 billion from the crypto industry with a new infrastructure law by taxing it heavily. The bill uses a very broad definition of “broker” that would likely cover almost all crypto-related businesses under the new law.
The bill has received a lot of criticism from the community, as well as from several US senators. Yesterday, Senators Ron Wyden, Cynthia Lummis and Pat Toomey filed another amendment to the bill which would exempt multiple types of businesses from the new tax and reporting requirements.
Earlier today, however, Rob Portman and Mark Warner, the senators behind the original bill, filed their own amendment. However, this version is only a very minor modification of the original. Under this law, only proof-of-work (PoW) miners and companies selling hardware and software wallets will be exempt from the new requirements.
That could mean bad news for proof-of-stake (PoS) validators and blockchain developers. Cardano (ADA) is currently the largest PoS network on the market. The community talks about favoritism, calling each other to action and even harassing people to go to court. However, as Messari’s Ryan Selkis says, this may be one way to suppress both types of crypto in the US:
Step 1: Ban PoS under the guise of “tax compliance”
Step 2: Ban PoW under the guise of “environmental compliance”
Clever, likely effective. Back to wartime unfortunately. These people make me sick. I’m going to bed.
— Ryan Selkis (@twobitidiot) August 6, 2021
The problem lies in the fact that the White House has already backed Portman and Warner’s version, which greatly improves the chances of passing this bill. Nevertheless, there is still a vote to be taken first, which could be tomorrow.
We NEED you. Pls call your Senators. Pls tweet. Pls email. We are facing major headwinds on the Wyden-Lummis-Toomey amendment. Burying financial innovation in red tape & sending devs + miners on info collection wild goose chases for info they don’t know is horrible policy. https://t.co/7GRNIUkpKs
— Cynthia Lummis ???? (@CynthiaMLummis) August 6, 2021
I just got off of a call with several Cardano stake pool operators and the resounding theme was that we would all leave the US and take the tools and projects we are building with us. Nevermind the bureaucratic hurdles of becoming a licensed broker, implementation of KYC/AML for
— Li₿erty.Crypto. (@Orbital_Lexicon) August 6, 2021
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