US Infrastructure Bill Gets Delayed Due To Cryptocurrency Debate?

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US Infrastructure Bill Gets Delayed Due To Cryptocurrency Debate?

US Infrastructure Bill Gets Delayed Due To Cryptocurrency Debate?

 

Once a niche obsession of tech-savvy individuals, cryptocurrencies are now a powerful force at the highest level of government. The proposed bipartisan $1 trillion infrastructure bill has now been stalled for weeks. One of the reasons for the delay is the inability to reach an agreement on how to regulate the crypto industry.

The passing of the bill is expected over the next few days. However, the Senate is still divided on how close the government should oversee the crypto industry. The bill proposal includes a provision that introduces new tax obligations for the crypto brokers. The provision has been brought forward as the legislators struggled to find ways to finance the bill. Estimated tax revenue from the crypto industry is thought to be around $28 billion over the next 10 years.

How US Infastructure Bill Gets Held Up To Due Cryptocurrency Debate?

However, the provision has been met with skepticism on both sides of the aisle. Opponents include the liberals, who oppose the government’s overreach into tech. Also, the conservatives, traditionally skeptical about the financial regulation of the markets. The dispute produced a days-long stalemate and already delayed the bill significantly.

No matter how things end, the fact that crypto is such a big factor shows how far the industry has come. It’s now a major political force in Washington and attracts billions from major Wall Street investors. It seems that the industry has matured. The crypto investors are now aware of how Washington can influence their industry and vice-versa. In over a decade, the crypto market has grown to the value of $17 trillion and is clearly too big to be ignored.

 

Big Lobbying Efforts From Crypto Companies

Crypto companies are now starting to invest significant funds into lobbying efforts. Right now, they have over 60 registered lobbyists. In addition, they will spend over $5 million for this purpose this year. That’s twice more than in 2020. Among the lobbyists are some big names who carry a lot of weight in Washington. The list includes Max Baucus, the former senator from Montana, and Rosa Rios, US treasurer in the Obama administration.

 

Biggest Issues Are Tax Reporting Obligations From Crypto Firms?

The main issue in the argument is who will fall under the new tax obligations. The side favored by the crypto industry believes that crypto miners and software providers should be exempt from the tax. The whole industry depends on the miners and new tax obligations may make their job impossible to perform. On the other hand, the Biden administration states that they don’t intend to impose the new reporting obligations on the miners. However, they feel that the broad definition of exemptions could provide a whole industry with a loophole to avoid their tax obligations.

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Oversight Is Inevitable

After years of fighting against government regulations, the crypto industry now seems aware that some level of oversight is inevitable. Their focus now is on getting a voice in deciding on the new rules. This is similar to the path that the gambling and marijuana industries have already gone through. Both sides are now concentrated on efforts to find a middle ground. The goal is to provide sufficient funding for the bill while still allowing the crypto industry to thrive.

Rich Caesar

Rich Caesar

Rich Caesar is a part time writer for the Play Slots 4 Real Money online casino reviews, gambling news and mobile casino complaints site. He grew up in Las Vegas and worked in the casino gambling business for several years. We are proud to have Rich as a part time writer on our site.

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