{"id":323779,"date":"2021-08-13T16:07:00","date_gmt":"2021-08-13T13:07:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bidens-infrastructure-bill-doesnt-undermine-cryptos-bridge-to-the-future\/"},"modified":"2021-08-13T16:07:00","modified_gmt":"2021-08-13T13:07:00","slug":"bidens-infrastructure-bill-doesnt-undermine-cryptos-bridge-to-the-future","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bidens-infrastructure-bill-doesnt-undermine-cryptos-bridge-to-the-future\/","title":{"rendered":"# Biden\u2019s infrastructure bill doesn\u2019t undermine crypto\u2019s bridge to the future"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2e3817de879\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2e3817de879\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/bidens-infrastructure-bill-doesnt-undermine-cryptos-bridge-to-the-future\/#All_is_not_lost\" >All is not lost<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/bidens-infrastructure-bill-doesnt-undermine-cryptos-bridge-to-the-future\/#Grassroots_effort_%E2%80%9Ctook_everyone_by_surprise%E2%80%9D\" >Grassroots effort \u201ctook everyone by surprise\u201d<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/bidens-infrastructure-bill-doesnt-undermine-cryptos-bridge-to-the-future\/#Consider_the_bigger_picture\" >Consider the bigger picture<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Biden\u2019s infrastructure bill doesn\u2019t undermine crypto\u2019s bridge to the future <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDgvODc0Mjc1NmItNDI0Zi00M2QyLWIxNjgtNjZlN2JlYTQ1MTNjLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-128018ef>It was a topsy turvy week \u2014 \u201cstaggering,\u201d a crypto veteran called it. One that saw United States Senator Ted Cruz and Senator Ron Wyden collaborate on behalf of the cryptocurrency and blockchain industry \u2014 albeit, in a lost cause. These events could eventually pave the way for future regulatory success, though it may not seem that way now.<\/p>\n<p>To recap: The Biden Administration\u2019s $1.2 trillion infrastructure bill was supposed to be all about roads and bridges but as the Senate vote <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roached, it also became about cryptocurrency taxation. Thanks to a last-minute provision added to the bill, which some crypto advocates warned could have dire consequences, the changes could drive BTC miners out of the U.S. and thwart future blockchain development. <\/p>\n<p>\u201cIt will be a stunning loss for America and our ability to remain the innovation epicenter of the world,\u201d <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.businessinsider.com\/elon-musk-ted-cruz-jack-dorsey-crypto-tax-tech-infrastructure-2021-8\" data-amp=\"https:\/\/www-businessinsider-com.cdn.ampproject.org\/c\/s\/www.businessinsider.com\/elon-musk-ted-cruz-jack-dorsey-crypto-tax-tech-infrastructure-2021-8?amp\">warned<\/a> venture capital firm Andreessen Horowitz.<\/p>\n<p>A last-gasp compromise was reached with senators from both parties participating which briefly raised hopes, but any late changes to the bill required unanimous consent on the Senate floor. Alabama\u2019s Richard Shelby scotched the effort, reportedly because it didn\u2019t include his amendment for $50 billion in military spending \u2014 entirely unrelated to crypto taxation. <\/p>\n<p>Thus, the infrastructure bill passed the Senate Tuesday with its proposal to generate $28 billion in tax revenues from crypto transactions largely intact, along with a definition of \u201cbrokers\u201d subject to reporting regulations so broad that it could (potentially) include crypto miners, software developers, node validators and even those creating nonfungible tokens, or NFTs.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"All_is_not_lost\"><\/span>All is not lost<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Upon further reflection, the sky may not be falling. The legislation will now move to the U.S. House of Representatives which will have its own priorities and modifications, and the timeline for implementation is still some two-and-a-half years away, so anything can happen. There might even be some long-term advantages for the crypto sector that will come from that week\u2019s tumultuous events.<\/p>\n<p>\u201cThe developments over the past week were massively positive,\u201d Peter Hans, managing director at digital asset management firm Arca, told Cointelegraph, adding: \u201cThis is now firmly on the radar of Congress, which means they are starting to learn beyond the tired narratives of energy efficiency and ransomware payments.\u201d<\/p>\n<p>The industry still has to be on its guard, however, because the language in the bill is \u201cbroad enough to have the potential to be significantly damaging,\u201d according to Matt Hougan, chief investment officer at crypto index fund provider Bitwise, told Cointelegraph. Even if is does not necessarily \u201cguarantee a dire outcome,\u201d he went on to add:<\/p>\n<blockquote><p>\u201cParts are vague and the worst ramifications are unlikely to hold up in court. But, interpreted in certain ways, it could indeed have significant consequences, stifle innovation and limit the growth of the industry in the U.S.\u201d<\/p><\/blockquote>\n<p>\u201cA lot is at stake,\u201d as Rocco Marchiori, a certified public accountant and vice president of risk management at Blockware Mining, told Cointelegraph. &#8220;Everyone working in this space wants clarity,\u201d especially \u201ca clear definition of a broker,\u201d because brokers under the law will have reporting requirements that go beyond what is demanded of traditional brokers. The Coinbases of the world are prepared to file 1099 tax forms as required, said Marchiori, but not developers or transaction validators.<\/p>\n<p>\u201cYes, the bill has already passed the Senate with the initial, very vague language and is on the way to the House,\u201d Hans said, but the House will make adjustments and then a reconciliation process takes place with the Senate, \u201cso nothing is final.\u201d Either way, added Hans:<\/p>\n<blockquote><p>\u201c[Senator Robert] Portman was clear in the intention of the language, as was [U.S.] Treasury [Department], so the implementation of the end language has almost no chance to be the draconian descriptions that you are seeing in the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>.\u201d <\/p><\/blockquote>\n<p>\u201cNothing will be implemented until the end of 2023,\u201d according to Zachary Kelman, managing partner at Kelman PLLC and <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> counsel at Cointelegraph. Furthermore, he is doubtful that the troublesome language and flawed definitions will make it that far.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Grassroots_effort_%E2%80%9Ctook_everyone_by_surprise%E2%80%9D\"><\/span>Grassroots effort \u201ctook everyone by surprise\u201d<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Despite the setback on the Senate floor, the crypto industry may not have come away empty handed. \u201cIt\u2019s not a completely wasted effort,\u201d said Winston Ma, adjunct professor at New York University School of Law and author of <em>The Digital War: How China\u2019s Tech Power Shapes the Future of AI, Blockchain and Cyberspace<\/em>, told Cointelegraph. \u201cThe crypto industry\u2019s arguments reflected in the legislative record could influence the IRS\u2019s interpretation when the agency writes detailed guidance and implementation rules.\u201d <\/p>\n<p>The week had its share of oddities, too, including the spectacle of U.S. senators crossing party lines to forge a compromise on the bill\u2019s cryptocurrency tax provisions, a rare sight these days. \u201cUltimately, U.S. regulators want sensible protections in place that foster innovation and growth. In order for real institutional investment, we need to see regulatory clarity, and this is the first step,\u201d said Hans. <\/p>\n<p>\u201cThe fact that a debate around crypto held up a $1 trillion bipartisan infrastructure bill is proof positive that there is a growing recognition of the importance of this industry to America\u2019s future,\u201d added Hougan, continuing: \u201cThe fact that the crypto industry was able to rally so quickly and massively to influence the political agenda says great things about the future.\u201d<\/p>\n<p>It was shown this past week that \u201cthis is a global group, and we cooperate quickly and effectively,\u201d said Marchiori, while Hans added that the mobilization of the crypto sector and its lobbying thrust \u201cwas grassroots, and it took everyone by surprise.\u201d<\/p>\n<p>\u201cYes, there was hyperbole, as there always is in politics and lobbying,\u201d continued Hans, \u201cbut this can serve as a catalyst to strengthen the lobbying efforts in DC. It also served as the catalyst to make politicians aware that they have constituents who care deeply about the asset class, and it is totally non-partisan. I honestly see no real negatives.\u201d<\/p>\n<p>\u201cThe crypto community is coming into its own\u201d as a political factor, commented Kelman, and it wasn\u2019t lost on any number of U.S. senators, either, that they might now draw considerable social media attention to themselves if they take a stand \u2014 or even just comment \u2014 on crypto and blockchain developments. \u201cWhen\u2019s the last time any Republican got positive attention on Twitter,\u201d said Kelman, adding that Ted Cruz became practically a Twitter Crypto hero for the week.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">The Senate is on the verge of passing legislation that would be TERRIBLE for cryptocurrency.<\/p>\n<p>The infrastructure deal contains DANGEROUS provisions that would devastate crypto and blockchain innovation.<\/p>\n<p>Supporters of crypto need to make their voices heard. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/iXrcnne0tV\">https:\/\/t.co\/iXrcnne0tV<\/a><\/p>\n<p>\u2014 Ted Cruz (@tedcruz) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/tedcruz\/status\/1424097171578757120?ref_src=twsrc%5Etfw\">August 7, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Marchiori said that the crypto sideshow might have even been a sort of teaching moment for the nation\u2019s top legislators. \u201cIt was for us too. We don&#8217;t usually get involved in politics. It was encouraging to see senators interested in what we&#8217;re doing. Also, it was bi-partisan in nature.\u201d<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Consider_the_bigger_picture\"><\/span>Consider the bigger picture<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>It\u2019s easy to lose sight of the fact, too, that the infrastructure bill contains provisions that are critical for American society \u2014 which includes, of course, a significant portion of the crypto and blockchain community. As John Wu, president of blockchain developer Ava Labs, said in a statement made available to Cointelegraph: \u201cThe infrastructure bill is bigger than crypto and DeFi. As controversial as this tax-reporting measure has been, it\u2019s still in the industry\u2019s best interests to support a sensible infrastructure bill that will improve the physical and digital world for everyone in the US.\u201d<\/p>\n<p>Moreover, this is arguably just a single skirmish in one theater of a larger conflict. \u201cThe battle lines are just beginning to be drawn in the war over how cryptocurrency will \u2014 or will not \u2014 be regulated,\u201d Ma told Cointelegraph, adding:<\/p>\n<blockquote><p>\u201cSurely, you will see the crypto industry using its proven power to fight another day \u2014 on increased securities law scrutiny from the SEC as well as other challenges to its industry.\u201d<\/p><\/blockquote>\n<p>Overall, \u201cCrypto and blockchain <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> is at a significant moment, transitioning from proof-of-concept to a phase of mass adoption,\u201d Hougan told Cointelegraph. \u201cIt\u2019s precisely during this phase when regulators typically take notice of disruptive industries, and precisely during this phase where progressive regulation can unlock significant new economic growth and benefits for society.\u201d<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Crypto cowboys: Texas counties welcome Bitcoin miners with open arms<\/em><\/strong><\/p>\n<p>\u201cThis is a critical moment for the crypto industry,\u201d agreed Ma: \u201cSucceeding or failing to persuade lawmakers now will determine whether regulation allows the digital gold rush to accelerate or slows it to a sputter.\u201d Hougan concluded: \u201cThe past week has been pretty staggering,\u201d while also adding: <\/p>\n<blockquote><p>\u201cTwo years ago, people were talking about crypto as tulip bulbs. Two days ago, multiple U.S. Senators were debating the intricacies of proof-of-work vs. proof-of-stake consensus mechanisms. To say we\u2019ve come a long way is an understatement.\u201d<\/p><\/blockquote>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/biden-s-infrastructure-bill-doesn-t-undermine-crypto-s-bridge-to-the-future\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Biden\u2019s infrastructure bill doesn\u2019t undermine crypto\u2019s bridge to the future &#8221; It was a topsy turvy week \u2014 \u201cstaggering,\u201d a crypto veteran called it. One that saw United States Senator Ted Cruz and Senator Ron Wyden collaborate on behalf of the cryptocurrency and blockchain industry \u2014 albeit, in a lost cause. These events could&#8230;<\/p>\n","protected":false},"author":1,"featured_media":323780,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDgvODc0Mjc1NmItNDI0Zi00M2QyLWIxNjgtNjZlN2JlYTQ1MTNjLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,70934,46483,67874],"class_list":["post-323779","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-regulation","tag-taxes","tag-united-states"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/323779","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=323779"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/323779\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/323780"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=323779"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=323779"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=323779"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}