If you follow the news these days, you will not be able to ignore the new law on infrastructure change in the USA. With this law, US President Joe Biden wants to invest a large amount of money in the country’s infrastructure, which sounds very good at first and ultimately actually is. Because with a sum of about 550 billion dollars, the president wants to repair roads and bridges, as well as secure the energy supply. A sensible investment to give the country a push in the long run. However, after many aspects of the law have been in the news for days, one particular phrase has caught the attention of cryptocurrency fans. This is the following excerpt from the law: “… is responsible for this and regularly offers services that bring about the transfer of digital capital” According to this paragraph, each of these persons addressed must comply with tax reporting obligations that also apply to securities brokers. Linked to this is that the names and dates of future transactions should be sent to the tax authorities. But anyone who makes transactions on the blockchain cannot do this.
Therefore, there is currently a big uproar in the USA due to this new change in law, because it could make the path for cryptocurrencies in the USA much more difficult in the future. This, too, is one reason why a large number of companies and private crypto money fans in the USA have been calling in the last few days to make politicians aware that they do not really agree with this change.
Cryptocurrency fans are calling for a change of course
It is of course clear that the fans of cryptocurrencies want to defend themselves against this new law. Large companies and also many private individuals with influence and money have already called for campaigns against this aspect of the law. So they hope that a change will be made to this law before the vote in the House of Representatives. These efforts had already shown success in the last few days, as two amendments were proposed for debate before the vote in the Senate. There is still some time to vote before the next instance.
Thus there is still the chance to bring further changes into the race, which perhaps have a successful prospect of not preventing the law, but adapting it. Due to the commitment of many large companies and private individuals, the calls could be crowned with success in the end, but due to the fact that the United States is also financially plagued by the Corona crisis and is looking for new sources of income, it would be quite possible that the new law goes through just like that.
Because in this way the USA would collect significantly more taxes that previously did not have to be reported on cryptocurrency transactions. For this reason, too, the new law has been approved by many supporters of cryptocurrencies. It is not that all fans of Bitcoin and Co. are against these new regulations. You can even find many big names in the field of crypto money who speak out clearly in favour of this law. So it will be exciting to see how the US House of Representatives will decide.
The new law on infrastructure change is not yet through
On the positive side for cryptocurrency fans, this new law is not yet through. In fact, it will come before the House of Representatives. In the organ there, it is possible that further changes will be made to the law and this could also affect the aspect with cryptocurrencies. However, the chances of this are rather bad, since this is not the biggest criticism of the legislative package in the USA, at least currently. In general, the new law takes in a lot of positive things, which will soon bring the country a lot of good, because the infrastructure in the states urgently needs renewal and the 550 billion dollars are of course just right.
Nevertheless, there may still be changes in the House of Representatives, because many cryptocurrency fans have reacted to the law and asked people to write to their MPs, via email or letter. With the votes of the people, cryptocurrency supporters hope that a change in the aforementioned paragraph still seems possible. In fact, we will find out in the next few days how the MPs decide and we will then bring you up to date accordingly. But how serious is the new infrastructure law for cryptocurrencies and could it even mean the end for Bitcoin and Co. in the USA?
This law would not be the end of cryptocurrencies in the US. At this point, it should be added that by no means when the new infrastructure law is being voted on the entire future of crypto funds is at stake. So there is no need to panic. There would only be more taxes for transactions and there would certainly have to be adjustments here and there, but no insurmountable hurdle could be placed in the way of the success of Bitcoin and other currencies of this kind.
Nevertheless, if the new law is actually implemented, it will mean some changes for cryptocurrencies in the US. The reporting obligation with regard to the transactions will have a positive aspect for the state and that is above all more tax money, which the USA is currently missing out on.