Big encryption has Arrived. On August 10, after days of arguing and angry tweets, cryptocurrency enthusiasts, advocates, and entrepreneurs watched in horror as the U.S. Senate approved a $1 trillion infrastructure bill, an article in it Many people worry that it may endanger the entire US encryption industry and cannot be repaired. The controversial rule will require “brokers” that trade in digital assets (ie, cryptocurrencies) to report their customers to the IRS in order to tax them.
The crypto crowd complained that the bill’s definition of “broker” is so broad that it may include miners, validators, and developers of decentralized applications—all of which play a role in the operation of the blockchain ecosystem. Key role, but their identities cannot be determined. Anonymous User.
Initially, because three senators proposed an amendment to clarify the term “broker”, it seems that the wording of the bill may be adjusted to exclude these categories. Then another one, supported by the White House, Correction appears, Pushing for less lenient clarifications, exempting proof-of-work miners-they use energy-intensive processes to protect blockchains, such as Bitcoin or Ethereum-but there are not many other categories, such as proof-of-stake validators, which perform the same The function has no energy to burn. While the compromise position was being formulated, the Senate decided to pass the bill without modification. Any changes must be made at a later stage-and it is likely to happen, because the law’s patents cannot be enforced.
On the surface, this is a disastrous defeat for US cryptocurrency. But the narrative that has been going on is completely different: the Infrastructure Act is a watershed in the history of cryptocurrencies. This technology-whose core is the crypto anarchist, anti-banking, and fringe anti-government manifesto disguised as code-has finally gained an important sign of prestige: LobbyThe fact that some senators are preparing to compete with cryptocurrency seems to indicate that the cryptocurrency industry is more than just a bunch of Twitter accounts and some blue sky venture capitalists. Whatever the reason, it has influence, and-after the legend of the Infrastructure Act-it will be ready to use it more cleverly.
“We have seen the formalization and maturity of the crypto lobby. This is the first coordinated effort to put it into practice,” said Alex Brammer, vice president of business development at Bitcoin mining company Luxor Tech. Say. “Organizations like the Blockchain Association, the Texas Blockchain Council, or the Digital Chamber of Commerce will certainly continue their work.”
Cryptocurrencies are often described lazily as the Wild West, but in fact, established companies operating in the industry—from large mining companies to Wall Street-listed Coinbase giants—are often eager to define the boundaries of cryptocurrencies through regulation. What is acceptable and what might get them into trouble. “Senior players in this field welcome smart supervision: it provides clarity and predictability for large operations,” Brammer said. “It provides a set of rules of the road that allows large public companies to ensure that they do their best to be as viable and profitable as possible in the future.”
But what about the smaller, less mature, and less corporate players? Bitcoin – an asset owned and admired by billionaires such as Mark Cuban and Elon Musk – has been developing into an influential and brand name since 2009 Industry. (Even Ted Cruz Waxing lyric it).
The controversial amendment approved by the White House could have saved Bitcoin while throwing most of the cryptocurrency under the bus. It is true that when the plan emerged, the crypto lobby—or at least crypto Twitter— stood up against it. Jerry Brito, executive director of the cryptocurrency trading group Coin Center, lashed out at the Senate’s attempts to pick “winners and losers”, while venture capitalist and cryptocurrency theorist Balaj Srinivasan (Balaji Srinivasan) claimed that the amendment will eventually open the door to a total ban on Bitcoin. But it is questionable whether, in the long run, there will be a rift between the large cryptocurrencies that require clear regulation to achieve peace of mind and the smaller players in the cryptocurrency community, the latter may not be able to meet the requirements that the regulation will be imposed on others.