Sorry guys, we lost! The infrastructure bill likely will pass and it will have a ripple effect on the crypto industry. It gives ground for the government to enforce certain regulations that impact every crypto product.
I wrote a previous article to bring up only the attention of interpretation on “broker” status, but there are more than just a word interpretation as the bill may expand the government’s ability to do more than just taxation.
How crypto becomes so political as its position used to be freedom and outlaw, but now people are begging to pass laws exempt what we used to do?
Let’s begin with the Infrastructural Bill.
What is Infrastructure Bill?
The purpose of the spending bill is to close the gap between rich and poor by providing more jobs. It is a total of $3.5 trillion dollars to human infrastructure include physical infrastructure, ideology infrastructure, and virtual infrastructure.
We are focusing on virtual infrastructure as broadband internet which requires $65 billion dollars.
In the meantime, the Congressional Budget Office predicted that will add a $256 billion deficit for over 10 years.
Everything sounds reasonable and straightforward until the Treasury department did something so out of blue.
They slip a bill additional 58 pages of a document called “Digital Asset Market Structure and Investor Protection Act” on June 17th, 2021 which may help to raise $28 billion tax revenue by enforcing a collection of information reporting requirements from crypto users to potentially provide to the IRS.
The broker status
This 58-page document likely expends a broader definition of “broker” to include anyone who is responsible for and regularly providing any services to transfer digital assets. This means as long as you are handling some degree of crypto transactions, you are liable to identify users that you deal with and provide their names and addresses which just like you are running a financial service as a broker.
That is not the end, it gives the government a powerful tool to ask individuals to conduct surveillance services for them by carrying liability of future financial risks.
The government finds a way to use citizens to surveillance other citizens.
The Treasury vs. Stablecoin
USD Coin (USDC) wants to become a full-reserve national commercial bank that will challenge the status of the Treasury Department and the Federal Reserve. As stablecoin is capable to not only control their supply of money, they can offer better deals than fiat currency would not be able to do so.
This is a serious threatening to fiat homogeneous domination and directly compete with the Treasury Department.
The SEC vs. Defi
The Securities and Exchange Commission moves even faster to charge the Defi project alleged of fraudulence with a $30 million settlement legal case.
On the other hand, the SEC is asking for broader power to possibly oversee the entire Defi program in the future.
The Senators vs. Crypto
Senator Elizabeth Warren wants crypto cops to oversee the industry and protect consumers. She thinks crypto is a threat to the system which needs more regulations before it is too late.
The FBI vs. Bitcoin
Hackers are rising with demand on crypto as ransoms from each hijacking incidence. The rise of ransomware attacks put the crypto industry in a dangerous position that links with criminal activities and possibly national security issues.
As from the past, the FBI was cracked down on Silk Road, a black market solely trade through Bitcoin.
The Justice Department vs. Crypto Exchange Platform
The Justice Department along with the IRS was probed Binance cryptocurrency exchange of possible money laundry which triggers international probs across the globe from Europe to Asia. Regulators are sending warnings and shut down their operations within their countries.
Ted Cruz ruined everything
Thanks for Ted Cruz, a celebrity politician, brings focus point on a crypto amendment that eventually got killed. It doesn’t really matter for a politician to pass an amendment as the chance is so slim but he gains his reputation for backing up crypto which is his only interest after all.
The future of crypto
The crypto all started from Bitcoin, a voluntary organization with coders that enthusiastically find a viable solution about digital cash.
Fast forward today, many crypto projects brand themselves as tech startups to make rich quickly.
What is left behind of the crypto industry may change from apolitical to more political involvement that is difficult to get themselves out.
In conclusion
The technology is a solution not to abuse for taking advantage just like the centralized system with trust base but a verify base that depends on individual to verify each step and reward of such good efforts.
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Disclosure: I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose cryptocurrencies are mentioned in this article. This information is only for educational
