There is rising concern about a proposed US law as $6000 was shaved off the price of bitcoin.<\/p>\n
Bitcoin dropped from Sundays high of (AUD)$57,262 to $51,454 at 7am today as fears grow about the impact of the US President Joe Bidens proposed $675 billion infrastructure bill.<\/p>\n
Bitcoin has surged in recent weeks after a topsy-turvy year.<\/p>\n
It took a dive when Elon Musk hinted Tesla might dump its cryptocurrency holdings in May.<\/p>\n
A crypto clampdown by Chinese regulators in June also hit the price hard.<\/p>\n
Now there are jitters about a provision in the infrastructure bill which could raise $37.81 billion from crypto investors, with some warning it could kill the industry.<\/p>\n
RELATED: China bans bitcoin to make own cryptocurrency<\/p>\n
This is a deeply misguided provision that, if adopted, will do far more harm than good to US interests, lawyer Jake Chervinsky wrote in a lengthy Twitter thread.<\/p>\n
He explained the bill would expand the definition of a broker to include any person who (for consideration) is responsible for and regularly provides any service effectuating transfers of digital assets.<\/p>\n
That could lead to increasing Internal Revenue Service reporting requirements.<\/p>\n
The brokers may also been forced to collect customer data including names, addresses and phone numbers.<\/p>\n
This definition is so broad, it could apply to nearly every economic actor in the US crypto industry, if read literally, Mr Chervinsky said.<\/p>\n
This sounds insane, but it really might happen.<\/p>\n
Most crypto legislation goes nowhere, so its easy to ignore. Not this time.<\/p>\n
This provision is part of the bipartisan and otherwise popular infrastructure bill, which is moving quickly through Congress and is highly likely to pass.<\/p>\n
First, it defies logic to adopt a regulation for which compliance is literally impossible, unless the goal is to kill the industry.<\/p>\n
The provision was included to essentially help fund the massive cost of the bill.<\/p>\n
It must include pay-for provisions to raise revenue for new spending so that its revenue-neutral as a whole, Mr Chervinsky explained.<\/p>\n
The Joint Committee on Taxation has projected that, collectively, the provisions in the bill would boost revenue by $68.87 billion.<\/p>\n
IRS Commissioner Charles Rettig requested broader authority from Congress in June to collect information on cryptocurrency transactions.<\/p>\n
Mr Rettig said that these transactions, by design, were often off the radar screens, while noting that the most recent market cap in the crypto world exceeded $2.7 trillion and more than 8600 exchanges worldwide.<\/p>\n
An original revenue-raising provision that was struck from consideration after losing Republican support involved giving $50 billion to the IRS to beef up its enforcement and tax-collecting initiatives as means to crack down on filers who are not fulfilling their obligations.<\/p>\n
Senate Majority Leader Chuck Schumer said he hoped to move forward with a vote on the infrastructure bill this week.<\/p>\n
with Fox News<\/p>\n
<\/p>\n
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\nPanic spreading as bitcoin price goes up and down - NEWS.com.au<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"