The United States Congress has been having trouble deciding on the infrastructure bill over debates on cryptocurrency regulation.
The U.S. Congress’ decision on the highly anticipated infrastructure bill is undergoing some delays because of the wording in its crypto legislation. When the bill was first announced, it noted that some of the costs would be offset through stronger enforcement of the crypto industry.
The back and forth first started when Senator Pat Toomey said that he would propose an amendment to the legislation because it didn’t “work.” Toomey believes that the definition of what a broker is should change — and not include wallet providers, miners, and stakers, for example.
Along with Senators Wyden and Lummis, Toomey proposed an amendment with the change in definition, among other things. Their goal was to make the bill more conducive for innovation, something pro-crypto lobbyists have been fighting for. The crypto community very well received this, but it appears to have caused a snag in Congress.
Experts have said that this is a sign that cryptocurrencies are beginning to be understood by officials, including its potential. There appear to be two camps in the government: one that supports oversight for immediate benefits like greater tax revenue and another that sees greater long-term benefits from friendly regulation.
Big tech, already a hot topic in the government, will also play a big role in the years to come. Twitter co-founder and CEO Jack Dorsey supported the amendment put forward by senators, saying that the original requirements were unworkable for stakeholders. Dorsey is a prominent supporter of bitcoin and has called it the money of the Internet.
Coinbase and others have done the same, but it remains to be seen if the amendment will be approved. The following weeks are going to be a critical time for the crypto market as the U.S. gears up its efforts.
All eyes on US crypto regulations
The U.S. is inching closer to releasing a substantial regulatory framework for the crypto market. For the longest time, governmental authorities hesitated from involving themselves. But the market cannot be ignored anymore, and the occurrence of notorious incidents like the Colonial Pipeline hack have spurred decision-making.
But the specific nature of the future of crypto in the U.S. is up in the air. While it is unlikely that the U.S. will impose any damning laws, it is not likely to let the crypto market go fully untethered. Major names in the government have repeatedly stated the importance of investor protection, including Gary Gensler, Chairman of the SEC.
Other countries will also focus on the U.S.’ actions. While some countries have begun working on regulation, most notably South Korea, most have barely begun to examine it. Many will follow the lead of the U.S., and for that reason, the upcoming regulation could have a big impact on the market.
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