The new rules proposed by U.S. lawmakers that affect cryptocurrency regulation, the establishment of stablecoins and the taxation of digital assets may help ensure that at least part of the funds is used for the $1 trillion infrastructure bill proposed on Monday.
The new rules are made in two separate bills.This First Digital Asset Market Structure and Investor Protection Act (DAMSIPA) introduce Published by Representative Don Beyer (D-VA) on July 28. second It is the $1 trillion Infrastructure Investment and Employment Act (IIJA), which includes many provisions related to cryptocurrencies.
The central focus of DAMSIPA seems to be to clarify the responsibilities of various financial regulators with regard to cryptocurrencies and other digital assets. Allegedly, this clarification will make it easier for these agencies to supervise these departments and protect Americans from encryption-related financial crimes.
The bill will also explicitly allow the Federal Reserve to issue central bank digital currency (CBDC).Here is Become the focus area As the Bank for International Settlements, the International Monetary Fund and the World Bank Express agreement CBDCs and China touted The success of the digital renminbi.
Beyer’s office stated that DAMSIPA will also “clarify that digital assets, digital asset securities, and fiat-based stablecoins are not US legal tender, and authorize the U.S. Secretary of the Treasury to allow or prohibit the U.S. dollar and other fiat-based stablecoins.” This has greatly increased. Regulation of stablecoins.
The bill will also formally determine “the regulatory requirements for digital assets and digital asset securities to comply with anti-money laundering, record keeping and reporting requirements.” This will make it easier for the IRS to determine the taxes that should be paid by the owner of a particular cryptocurrency or digital asset.
International Business Association
Cryptocurrency is not the central focus of IIJA-the 2,702-page bill mainly deals with expenditures related to transportation systems, broadband deployment, climate projects, and other U.S. infrastructure. But cryptocurrency is one of many other seemingly unrelated subjects affected by the provisions of the bill.
New York Times Report The encryption-related provisions of the bill mainly focus on tax enforcement, requiring “cryptocurrency brokers and investors to provide more disclosures about their transactions to the IRS.” (Again, this will make it easier for the agency to figure out the government’s cuts to these transactions.)
According to the report, the Joint Committee on Taxation stated that these changes may generate an additional $28 billion in taxes in the next ten years, as long as the IRS has a better understanding of cryptocurrency-related transactions. This is not much in the $1 trillion bill, but it seems to be the case for those taxed.
Counterattack from multiple sources
These regulations have drawn criticism from the cryptocurrency industry and privacy activists. Electronic Frontier Foundation (EFF) Critical language For example, these new rules were often established in the past because it lacked the nuances needed to properly regulate things as complex as cryptocurrencies. EFF says:
“This broad and confusing language opens the door for almost all entities in the cryptocurrency ecosystem to be regarded as’brokers’-including software developers and cryptocurrencies that do not custody or control assets on behalf of users. Startups. It may even potentially “involve miners, people who confirm and verify blockchain transactions. The task of collecting customer names, addresses, and transactions means that almost every company, even companies that have a tangent relationship with cryptocurrencies, may suddenly be forced to monitor their users. “
The new rules introduced by DAMSIPA for stablecoins have also been criticized. Axler Goldich partner Marc Goldich said: “They not only issue stablecoins based on fiat currencies, but they also use them, which is actually illegal.” Tell CoinDesk. “It will be interesting to see how it performs and how it relates to algorithmic stablecoins.”
The bill also makes it clear that existing stablecoins are not exempt from these restrictions, which means that those who already own stablecoins may suddenly find themselves unable to use them. Coupled with the emphasis on the issuance of CBDC, it can be seen as an effort to prioritize digital dollars over existing stablecoins.
Obviously, U.S. lawmakers believe that the cryptocurrency industry is ready—or long overdue—to develop additional rules that will help fund infrastructure improvements. The possibility of the Fed issuing a CBDC also seems to be higher than before, indicating that the government may also be ready to accept cryptocurrencies.
But it is also obvious that the rules and IIJA terms introduced by DAMSIPA will cause controversy. What this means for the cryptocurrency industry, the enthusiasts involved, and the financial industry remains to be seen.