{"id":1764,"date":"2021-08-11T06:19:54","date_gmt":"2021-08-11T06:19:54","guid":{"rendered":"https:\/\/depthtrade.com\/?p=1764"},"modified":"2021-10-11T16:59:11","modified_gmt":"2021-10-11T16:59:11","slug":"usa-crypto-scene-to-shell-out-for-infrastructure-program","status":"publish","type":"post","link":"http:\/\/localhost\/depth\/usa-crypto-scene-to-shell-out-for-infrastructure-program\/","title":{"rendered":"USA: Crypto Scene to Shell Out for Infrastructure Program"},"content":{"rendered":"\n

Investors in the cryptocurrency industry should not sweep current developments in Washington under the rug, as it is becoming apparent that the U.S. government intends to counter-fund the costs associated with the potential passage of a massive infrastructure program by taxing the cryptocurrency industry.<\/em><\/p>\n\n\n\n

Tightening for cryptos is hidden in infrastructure program bill<\/strong>
For several years now, a significantly tightening regulation – or even a ban – of the emerging cryptocurrency industry has hovered over the heads of companies and investors in this sector.<\/p>\n\n\n\n

That a significant tightening of this regulation in the United States would then be reflected in, of all things, that bill (and its numerous amendments) to enact a $550 billion infrastructure program proves to be a surprise after all.<\/p>\n\n\n\n

Influential crypto lawyer Jake Chervinsky explains on his Twitter channel the ways in which the likely passage of this infrastructure program would impact companies in the cryptocurrency industry. The consequences, in Chervinsky’s view, would be devastating.<\/p>\n\n\n\n

Jake Chervinsky’s warnings are derived in particular from statements in the relevant bill that outline the ways in which the construction and modernization of roads, highways, and bridges in the United States would be financed.<\/p>\n\n\n\n

Taxation of “brokers” to contribute to financing<\/strong>
An amount of $28 billion is to be counter-financed, among other things, by taxing brokers in the cryptocurrency sector. Contrary to the previous assumption that this would only concern companies such as Robinhood or Coinbase, it is now dawning on investors in this area that anyone who is active in the investment universe of cryptocurrencies will find themselves affected by this.<\/p>\n\n\n\n

Meaning, then, that under the definition of “broker” with reference to Jake Chervinsky, all economic actors in this field, including crypto miners and StartUp companies, will be included in potential taxation. Following passage of this bill, all actors in this report would likely see themselves required to report annually to the U.S. Internal Revenue Service (IRS).<\/p>\n\n\n\n

Comparisons with the online casino sector<\/strong>
Countless critics point out that the cryptocurrency industry is now viewed by members of the U.S. Congress in much the same way as the once emerging online casino industry, which was hit with a hammer blow of regulation out of nowhere about ten years ago.<\/p>\n\n\n\n

Comparable is also the fact that the cryptocurrency markets – similar to the online casino sector before – have a stigma of “sinfulness”, but beyond that the awareness among legislators prevails that with regard to the cryptocurrency markets it is an area that can be milked like a cow.<\/p>\n\n\n\n

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1\/ If you\u2019ve been following threads on the Infrastructure bill, you know that there is a hastily conceived provision related to digital assets. This provision could have a profound negative impact on crypto in the US and unintentionally push more innovation offshore.<\/p>— Brian Armstrong (@brian_armstrong) August 4, 2021<\/a><\/blockquote>