‘No exercise’: infrastructure bill could sink US crypto industry

The situation is out of control for crypto in Washington DC.

Over the years, the threat of massive regulation has risen like a hammer ready to crack down on the crypto industry. Now the hammer is poised to fall on a possible form of a major infrastructure bill in the US Senate.

“This is not an exercise,” he writes, ” an effective crypto lawyer and a sober voice in the hype-sensitive industry. In a must-read Twitter post, Cervinsky explains how a $ 550 billion bill, mostly sprawling on roads and bridges, could cut off U.S. crypto companies.

The pain arises in a section of the bill that explains how the U.S. will pay for these roads and bridges. So, the bill says Uncle Sam plans to cover $ 28 billion in costs by violating crypto brokers.

The problem is that the bill defines “broker” —a term commonly used to describe coinbase and Robinhood—basically like any crypto-related company. As Chervinsky writes, ” this definition is so broad that it can be applied to almost all economic actors of the American crypto industry if read literally.”The generic term “broker” can be applied to miners, Defi startups and others who have to submit customer forms to the IRS, which in some cases is not possible.

As a result, the US crypto industry is in the same position as the online gambling industry a decade ago when Congress ended. In the eyes of lawmakers, crypto companies such as online casinos seem both sinful and rich, making them an ideal target to raid for revenue.

The difference, of course, is that cryptography is not a new form of taxable vice, but a world-changing technology like the internet. Of course, this made bad things possible (including gambling-like behavior), but the internet did, too, and US lawmakers realized that it made strategic sense to build a network on American shores.

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