All means are good - When it comes to digital currencies, it seems that everything is cyclical, even legislation. The summer of 2021 will be one of regulation for digital assets and crypto businesses. Indeed, regulators around the world have been cracking down on the cryptosphere for several weeks now. Whether it's the Financial Action Task Force (FATF), the European Commission, or even the countries themselves, everyone seems to want to harden their stance on Bitcoin and cryptos. The last time we saw this much hype about cryptocurrency oversight was during the 2017 bull run.
Senator Elizabeth Warren goes to war against Bitcoin and cryptocurrencies
In an interview for CBNC on July 28, Senator Elizabeth Warren once again asserted her dislike for digital assets. According to her, it is absolutely necessary that all companies working around Bitcoin and cryptocurrencies operating in the United States follow common rules:
"I don't want to wait for a whole bunch of people, a whole bunch of small investors, a whole bunch of small traders to be completely annihilated [...] "Who benefits from the lack of rules? It's the giants. Who wins when there are no police on patrol? It's the giants."
More to the point, Warren didn't attack digital currencies, but the people who use them to abuse the gullibility of investors. It's hard not to agree with the senator on this point as it's so common for seemingly innovative projects to be pure scams. Finally, Elizabeth Warren wants digital assets to be taxed more heavily, especially when they are held by wealthy individuals.
The United States is preparing a new tax on Bitcoin and digital assets!
As part of his economic stimulus package, President Biden has designed a massive infrastructure plan. The goal of this plan is to help the economic recovery by renovating the existing infrastructure. The plan includes the creation and renovation of bridges, roads, railroads, but also the construction of green infrastructure such as electric vehicle charging stations.
U.S. senators agreed on July 28 to a $550 billion investment plan. The new agreement significantly changes the way infrastructure spending will be funded, after Republicans objected to a pillar of the original framework: increased revenue from IRS tax enforcement.
Instead, negotiators agreed to reallocate more than $250 billion from previous crisis relief legislation, including $50 billion from increased unemployment benefits that were prematurely cancelled this summer by two dozen Republican governors.
In addition, the latest iteration of the bill calls for new reporting requirements for cryptocurrencies and increased crypto taxes. The increased regulations could bring in as much as $28 billion. Under the proposed measures, cryptocurrency brokers and exchanges would be subject to increased reporting requirements. Under the legislation, all businesses sending or receiving digital assets in excess of $10,000 will have to report these transactions to the Internal Revenue Service (IRS).