Friday, January 21, 2022
Home Crypto News Market Forget SEC, US Infrastructure Bill Is The Crypto’s Real Worry

Forget SEC, US Infrastructure Bill Is The Crypto’s Real Worry

- Advertisement -

Gary Gensler, chairman of the Securities and Exchange Commission (SEC) stated in a Bloomberg interview that he believes the SEC should tighten control over exchanges to protect investors against fraud. 

Read: On 3rd August Miami Becomes The First US City To Launch Their Crypto, Miami Coin (MIA) to Fund City Initiatives, And Rewards Users In BTC


Bloomberg reports that the SEC’s main concerns in crypto include “initial coins offerings, marketplaces, lending platforms, decentralized finance (Defi), stable coins, and exchange traded funds (ETFs). Gensler has made several comments about cryptocurrency regulation but has yet to address some of the most pressing questions in the industry, like whether an Bitcoin exchange-traded funds can be approved by SEC.

The Bigger Problem Is The Infrastructure Bill

However, the industry faces a larger problem. US Congress is currently looking for ways to fund an infrastructure bill, which aims to strengthen national railways, tunnels and bridges. One way to raise funds is to close loopholes that permit cryptocurrency holders to dodge taxes. 

Officials complain that crypto transactions can evade taxes because of weak reporting standards. Digital assets such as bitcoin are considered assets by the I. R. S., meaning that each transaction is subject to capital gains tax.

The Senate bill contains a provision that aims to raise taxes by $28 billion by forcing more companies to collect tax information. According to IRS officials, additional tax information will help track cryptocurrency earnings.

The bill was met with concern by the crypto community. The bill contained clauses that Industry lobbyists warned could also include crypto miners, who may be reluctant to share financial information.





Jerry Brito, Executive Director of Coin Centre said:

“Yes there were concessions but the latest language can still be interpreted by Treasury to cover miners, lightning nodes, and the like. If that’s not Congress’s intent, there are easy fixes they can adopt. There’s still time.”

New York Times Writes:

“The final legislative text included some changes to alleviate concerns of the cryptocurrency industry, which expressed alarm last week about new requirements that would define most of the participants in the sector as brokers and force them to turn over information to the I.R.S. The provision was projected to raise $28 billion over a decade.”

FTX US

Lobbyists were managed to modify some words, but industry supporters think the change isn’t enough. They fear that it could trap software companies that create products such as crypto wallets that allow people access to their assets.

- Advertisement -
Mark Brennanhttps://thecryptobasic.com/
Mark is 27, holds a Master degree in Business Administration, and works as a content Creator at TheCryptoBasic mostly on Crypto Market Updates. Since 2014 he has been active in the crypto sector. Thanks to the Business College in which other than Business subjects, he was taught about the disruptive potential of Blockchain. His interests include Blockchain technology and Crypto Market innovations. He also founded a small startup in which he gives lectures on cryptocurrencies.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Recent News & Articles

CoinMarketCap Finally Verified The Floki Inu Market Cap

CoinMarketCap (CMC), the world's number 1 crypto asset tracking website, has verified the Floki Inu (FLOKI) market capitalization. ...

Polkadex Joins Second Round of Parachain Auctions with Community Crowdloan

Tortola, British Virgin Islands,, 21st January, 2022,  — Polkadex Inc., the DeFi order-book exchange built on Substrate, has announced its parachain bid, aiming to...

Former VK.com CEO Andrew Rogozov Joins TON Foundation as Founding Member to Oversee Product Efforts at Successor of Telegram’s Blockchain Project

Abu Dhabi, UAE, 21st January, 2022, ChainwireAfter years of building, The Open Network (TON) is excited to announce an exclusive addition to its team:...

FTX Exchange Launches FTX Visa Cards That Will Enable Users To Spend Their Balances At Merchants Worldwide

FTX launches debit cards in collaboration with Visa. window.coinzilla_display = window.coinzilla_display || ; var...

Has The Time Come For Shiba Inu To Get Listed On Robinhood, As The Exchange Launch Public Beta Crypto Wallets

Online broker Robinhood has launched a cryptocurrency wallet beta program for 1,000 selected clients on a waiting list. ...

Ethereum Co-Founder Vitalik Buterin Comes Up With His Guess About Satoshi Nakamoto

During a conversation with UpOnlyTV, Vitalik Buterin, founder of Ethereum, spoke about the current challenges of his project and its use cases.

Top 5 Leading Crypto Firms

The blockchain sector is still in its infancy, but it is expanding rapidly. Blockchains are decentralized databases that are shared across computer network nodes...

Subscribe To Our Newsletter

Get Updated with All The latest Crypto News, Articles, Reviews, Analysis and much more. Delivered Every Monday.