The United States Republican Senator Pat Toomey has called for regulatory and financial bodies to make cryptocurrency regulations clearer. The senior senator made this call on Wednesday while his committee on Banking sat to discuss some of the regulations in the Infrastructure Bill. Toomey joined his other colleagues and industry leaders to make the call.
During the sitting, Toomey urged the legislative and designated agencies to ensure that federal laws aids in cryptocurrency development and blockchain technology while safeguarding digital currency investors. The senator believes that cryptocurrency could foster financial independence and become as revolutionary as the internet. He added that Blockchain could facilitate faster transactions without massive service fees.
The Infrastructure Bill Keeps the Senate Divided
The Infrastructure Bill, which seeks to address infrastructure challenges and accelerate development, has a section for crypto regulations. The controversial law forbids crypto investors, exchanges, and brokers from not reporting their total gains and losses of assets and digital transactions. The section will allow the IRS to monitor and track digital wallets for tax purposes.
It is this section that has left the senators at war with each other. While some members lobby for the law to remain, others are demanding the amendment of the regulations to help the crypto ecosystem develop more. Senator Toomey was amongst the people calling for the amendment after seeing a compromise in the bill. For some months now, Toomey has been the crusader of the cryptocurrency community, arguing how the bill could boost the growth of blockchain and the crypto space if amended.
Although already in the second half of 2021, the next few months will be critical for the digital currency market. With no date of when the bill would be amended let alone passed, investors will be wary of the market, keeping a close eye on every crypto movement in the market. Pressure is mounting on United States regulators, and it could cause the SEC to present some guidelines soon.
Chinese Crypto Mining Crackdown Still Leaves the Market Guessing
Moving to the Eastside, Chinese authorities are still going hard on the crypto sector. The crackdown by the Chinese authorities on mining pools has driven some mining firms out of the Asian region, migrating to the United States and other North American nations. In June, Chinese authorities disconnected some Bitcoin mining sites in Sichuan, affecting a significant portion of China’s mining capacity.
However, the crackdown seemed to have benefited the American market, as most mining activities shifted there. The United States gained massive profits from the mining shifts and now stands a chance to overtake China. Despite the intensified clampdown, China still has the lion’s share in the digital currency market.
If the Infrastructure Bill, the United States could benefit more from the crackdown in China. Operations will be expanded, and there will be exponential growth in the sector.