• Even as the market soars toward a $1.7 trillion price, panic is spreading among Bitcoin, Etheruem, BNB, XRP, and Dogecoin traders

  • Last night, the bitcoin price nearly quadrupled to nearly $43,000 per bitcoin, the highest since mid-May and nearly $10,000 more than this time last week. Meanwhile, the price of ethereum has led the cryptocurrency market higher in the last 24 hours, with traders aiming for $3,000 per ether token.

    However, many cryptocurrency traders are becoming increasingly concerned about the $550 billion bipartisan infrastructure bill that is currently making its way through the United States legislature and includes a provision to raise $28 billion from crypto investors, with some warning that it could “kill” the industry.

    “This is a very flawed provision that, if implemented, will do far more harm than good to US interests,” tweeted Jake Chervinsky, a crypto-focused lawyer, in a lengthy Twitter thread outlining how the measure may affect the budding crypto market.

    The bill, which passed a preliminary Senate vote this week, proposes taxing bitcoin and cryptocurrency profits to fund infrastructure investment in the United States, with the definition of broker being expanded to the point where crypto exchanges and wallet providers would need to collect far more information about their users than they currently do.

    According to a draft copy of the law we saw, every broker who transfers any digital assets would be required to file a return under a modified information reporting regime.

    According to the document, “the provision includes amending the definition of broker to reflect the realities of how digital assets are purchased and sold.” “The provision also makes clear that broker-to-broker reporting applies to all transfers of covered securities, including digital assets, within the meaning of section 6045(g)(3).”

    “Things are moving quickly, which can be frightening,” Chervinsky wrote, adding, “don’t worry.” This provision is not yet final and can be amended.”

    “It defies sense to enact a policy for which compliance is virtually impossible unless the purpose is to kill the sector,” Chervinsky cautioned, adding “this might entail a de facto ban on [crypto] mining in the United States.”

    Since China’s recent bitcoin and cryptocurrency mining crackdown, in which those who utilize powerful computers to safeguard blockchains and validate transactions in exchange for new crypto tokens have been barred from entering the country, the United States has emerged as a prospective new home for many.

    However, lawmakers who are concerned that bitcoin and crypto mining could hasten climate change have expressed dissatisfaction with the industry’s rise in the United States.

    “Unfortunately, we’ve seen in the drafts that the categories of persons who would be obligated to report are so broad that it potentially covers persons who only provide software or hardware to customers, and who have no visibility whatsoever into user transactions,” Jerry Brito, executive director of Washington D.C.-based crypto think tank Coin Center, said via Twitter, adding that he was trying to “fix” the situation.

    “It potentially encompasses miners’ indexes as well; the saving grace is that presumably miners’ indexes do not have consumers as defined by the tax code.”

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