By Shelly Melancon (Switzerland)Members of America’s house of reps have approved the highly disputed infrastructure bill, including fresh digital assets tax law reporting policies for crypto traders and investors. The president Biden-led administration proposed this bill with the main purpose of enhancing internet coverage and transport network.
The Crypto Tax Policy In The Proposed Bill
But what caused the huge uproar at that time was strict reporting requirements contained in the proposed bill, especially the part where crypto-related transactions worth over $10K must be reported to the federal tax authority. As previously reported in various media, the senate had approved the proposal three months ago. But six senators proposed that the bill should be amended.
One of them said, “there are huge flaws in the crypto section of this bill. Parts of it are even unworkable and would be a threat to tech innovation.” One source of huge debate is where the proposed bill categorized all players within the digital asset industry as the same regardless of what they do there. The crypto community found it absurd that the government would subject crypto software developers and crypto exchanges to the same tax rule.
Bill Violation And Consequences
Furthermore, many crypto enthusiasts agree that the term ‘broker’ is loosely defined in the context of the bill. Hence, an exchange and a miner might be subjected to paying similar amounts as taxes. The bill clearly states that it is a punishable crime for anyone not to reveal his crypto-related profits. Legal counsels have argued that it shouldn’t be a crime if anyone fails to disclose their crypto-related gains.
Also read:A top lecturer at Virginia State University, Abraham Sutherland, opined that this bill “is awful for the DeFi space and even the entire digital asset community. The policy is almost an indirect ban on DeFi as DeFi players can’t comply based on how the industry works.”
BTC And Altcoins Show Profit Consistency
While BTC has been consolidating in the $60K range for some time, it hasn’t had an excellent performance in the past seven days, gaining just 0.5%. However, the top ten digital currencies have made double-digit gains within the period mentioned above. BNB, SOL, and DOT gained 25%, 21%, and 22%, respectively, over the past seven days.
Some of the altcoins outside the top ten even made triple-digit gains. MANA surged by 173%, SAND (176%), and LRC rose by 170% over the past seven days. These three coins have also performed excellently based on their 1-year statistics.
MANA/USD 1-hour chart. Source: TradingView
Several altcoins made double-digit gains this past seven days, asides from these three and the top ten digital assets. Some of them include BAT (40%), HOLO (42%), Airweave (67%), and Wonderland (25.7%). As of this writing, the overall valuation of the entire crypto market is almost $3 Tr. Despite the excellent performances of the altcoins, BTC’s crypto market dominance is still over 40%. The altcoins’ market dominance has increased with Ethereum leading the pack with 19% dominance.
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