TL; DR Breakdown
- The House of Representatives approves the proposed bipartisan infrastructure bill under President Biden’s governance.
- While it means to improve transport, communication, and utility pathways in the country, it is bringing trouble for crypto enthusiasts.
November 5 marked the day when the House of Representatives took a step to pass the $1.2 trillion worth bipartisan infrastructure bill. It stands to benefit the American citizens, focusing on both physical and social infrastructure. The bill has two sections: The Build Back Better initiative and the bipartisan traditional infrastructure bill.
Before this approval, there have been several issues delaying the implementation of the bill. Some supported the speedier approval of the Build Back Better campaign over the bipartisan infrastructure bill and vice versa. However, the bipartisan bill took preference to the Build Back Better initiative.
All the same, this bill will open more doorways for job creation and better living standards for US citizens. Furthermore, it will impact the growth of transport lines, including railways and highways. People can also expect better housing and cleaner water provisions for their homes.
The crypto community is not pleased with this outcome, considering inconvenient crypto tax laws will accompany the bill. Several parties are raising questions concerning the issue, airing that this move will slow down the technology and digital market progression.
How the bipartisan infrastructure bill is affecting crypto
The bipartisan infrastructure bill accompanied the act to regulate the crypto sector under the title ‘Digital Asset Market Structure and Investor Protection Act.’ Mr Don Beyer brought this to light in late July to provide more clarification surrounding the crypto industry.
Furthermore, it is supposed to curb the inflation effect in the US economy, which led to more expenses for its citizens. The US government also recognizes the rushed devaluation of its national currency, nullifying efforts to save finances. Crypto comes in here as a successful asset over the past two years and an alternative investment that people continue to leverage during these challenging times.
Bitcoin is the top crypto in the market today, managing to climb over the 60 000 USD mark this year. Its fixed supply of 21 million tokens boosts its value constantly and protects it from inflation. Increased crypto adoption indicates increased investor trust in digital assets, leading to their consequent growth.
Nonetheless, the bill is putting stringent regulations concerning the filing of digital asset usage and taxes involved. Some parties worry about the power the bill will offer the SEC and CFTC in regulating the American crypto space. Also, there are no explicit descriptions of who a broker will be, which could put out legal issues for investors who trade or HODL.
For a long time, the US government lacked clear guidelines to help regulate the crypto sector. As per SEC Commissioner Hester Pierce, the SEC should find a proper way to cover the loopholes found in crypto regulations. This point came up again as the EFF stated the confusion in words used in the bill.
The bipartisan infrastructure bill also gives Federal Reserve banks the right to issue the US CBDC, which could be a problem for stablecoins—as such, distributing and using them would be deemed illegal.
According to Senator Pat Toomey, these regulations are impractical to crypto users and could implicate efforts to progress technology. A Twitter user describes this bill as unconstitutional while expressing its lack of value for citizen privacy and financial freedom. The steps the government takes moving forward will be crucial in building or destroying the crypto sector.