What cryptocurrency is your mayor’s check in? 1-7 November
While cryptocurrency has long been an independent political issue, it is sometimes embroiled in the broader dynamics of the political process. The infamous Infrastructure Bill – a pillar of the Biden administration’s economic agenda – was unexpectedly passed in the US House of Representatives last Friday, despite the first Democratic settlement last week. Congress is supposed to vote first on the party’s other legislative priorities. The bill was passed between 228 and 206 and ends up on President Biden’s desk. In addition to allowing massive spending on roads, bridges, and broadband internet access, it comes with a number of crypto-related regulations that have remained unchanged since the response from the crypto community.
The defeat is not irreversible, however: advocates have yet to exhaust the tools available to challenge competitive tax reporting and financial oversight rules.
Below is a short version of the latest Deciphered Laws newsletter. For full details on the political developments of the past week, sign up for the full newsletter below.
Better roads, more surveillance
The definition of “broker” in relation to an entity that assists cryptocurrency transactions as part of tax reporting is probably the main problem crypto folks have had with the billing language. The concern here is that the current definition could include actors such as node operators or protocol developers who require them to report information about transaction partners to which they do not have access, making compliance impossible. However, it is still up to the Treasury Department to set the exact rules for its introduction so the crypto industry can attempt to negotiate reasonable terms.
Another problematic provision that later received a lot of attention is the 6050I provision, which imposes extensive custody requirements for recipients of $ 10,000 or more of cryptocurrency. Many observers have called the rule unconstitutional, with Coinbase CEO Brian Armstrong labeling it was a disaster. ”
Crypto Mayor Race
Meanwhile, New York City is getting its first bitcoin mayor. New York state is known as a tough jurisdiction for crypto businesses, but things could turn for the better if Eric Adams takes office on the first day of 2022. The first statement from the mayor-elect was his pledge that New York is a crypto-friendly destination by promoting talent for crypto-related jobs, removing barriers to entry, with the development of the industry and even considering a city coin project similar to MiamiCoin. Even if Adams’ support for Bitcoin remains limited to the public, it is still a huge win for the industry to have a top official in one of the major global financial centers promoting the program.
Dude, where is my spot Bitcoin ETF?
Representatives Tom Emmer and Darren Soto, the resilient hearts of the crypto industry, led the chief of the Securities and Exchange Commission, Gary Gensler, to give way to the agency’s apparent reluctance to approve applications for spot Bitcoin-based exchange-traded funds take instead of BTC futures. At the center of their letter to Gensler is the regulator’s argument that derivative-based products offer stronger investor protection than tracking spot prices without a lot of water.