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The new regulations could cause division in the Crypto community

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Big Crypto has it arrived. On Aug. 10, after a day of discussion and rage tweets, crypto-conference enthusiasts, advocates and activists were horrified to see the U.S. Senate pass a $ 1 trillion Infrastructure Bill, an article that many fear could jeopardize the entire American crypto sector beyond repair. The “brokers” of transactions made in digital assets (i.e., cryptocurrencies) in questionable rules should notify customers to the Internal Revenue Service in order to receive the tax.

The crypto crowd warned that Bill’s definition of “broker” was too broad to include miners, validators, and developers of decentralized applications. All of these, while fulfilling key roles in the functioning of the blockchain ecosystem, have no way of identifying anonymous users.

At first, it seemed that Bill’s language could be adapted to exempt these categories, as a trio of senators introduced an amendment to clarify the term “broker”. Then another, the protection of the White House, the correction appeared, encouraging less light clarity, with the exception of miners for proof of work — who use blockchains like Bitcoin or Ethereum to use energy-intensive processes — but not many other categories, such as validation evidence of participation. the same function without burning energy. While working on a compromise position, the Senate decided to pass the bill without amendment. Any changes will have to be made later — and most likely, given the current patent in the bill.

On the face of it, it is a trace of American cryptography. The narrative that has been taking turns is quite different: the Infrastructure Bill is a common moment in the history of cryptocurrency. Technology — essentially a border crypto-anarchist against a code-disguised government — is a manifesto against banks — has finally achieved a well-known mark: lobby. The fact that some senators are willing to tackle the crypto corner shows that the cryptocurrency industry is more than just something for Twitter accounts and some capitalist risk in the blue sky. Whatever the reason, it has an impact, and — after the saga of the Infrastructure Bill project — it will be even more skillful to use.

“We are seeing the formalization of the crypto lobby, the maturity, and that was the first coordinated effort that was put in place,” says Alex Brammer, of Luxor Tech, vice president of business development for the bitcoin mining company. “Organizations like the Blockchain Association, the Texas Blockchain Council or the Digital Chamber of Commerce will certainly continue to work on it.”

Cryptocurrency is commonly and lazily described as the Wild West, but the truth is that there is a desire to regulate fixed businesses operating in the sector – from large mining companies to giants listed on Wall Street, such as Coinbase. what is acceptable and what can cause problems. “The sophisticated players in this space support intelligent regulation: it provides clarity and foresight for large operations,” says Brammer. “It provides a set of rules for the road that will ensure that large companies are doing everything they can to make it as viable and profitable as possible going forward.”

But where does that leave smaller, less established, and corporate players? Bitcoin — an asset owned and competed by billionaires like Mark Cuban and Elon Musk — has been growing since 2009, becoming an industry with growth and brand recognition. (Ted Cruz too about letter waxing da).

The much-discussed change approved by the White House would have saved bitcoin while throwing a large chunk of the cryptocurrency under the bus. In fact, when that plan came up, the crypto-lobby – or at least the crypto-Twitter – came out against it. Jerry Brito, executive director of the cryptocurrency trading group Coin Center, opposed the Senate’s attempt to select “winners and losers,” capitalist and cryptoid ideologue Balaji Srinivasan claimed that the amendment would eventually open the door to a direct bitcoin ban. But it is worth asking whether in the long run, a call for clear regulation among the Big Crypto could be a success in order to achieve peace of mind and impose regulations on smaller players in the cryptocurrency community to meet the requirements to be adequately equipped.



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