ILLUSTRATION. The price of Bitcoin and a number of other cryptocurrencies has soared over the weekend. REUTERS/Dado Ruvic/Illustration
Source: Forbes | Editor: Barratut Taqiyyah Rafie
KONTAN.CO.ID – NEW YORK. The price of Bitcoin and a number of other cryptocurrencies has soared over the weekend. Bitcoin price, for example, experienced a surge of more than US$ 40,000.
Launch Forbes, Bitcoin price rose by nearly $43,000 per bitcoin late Saturday (31/7/2021), the highest since mid-May and nearly $10,000 higher than last week’s price.
Meanwhile, the price of Ethereum has been leading the cryptocurrency market higher over the past 24 hours, with traders eyeing $3,000 per ether token. The combined crypto market cap has added $250 billion over the past week and is currently approaching $1.7 trillion.
However, many crypto traders are feeling increasingly nervous because of the $550 billion bill of bipartisan infrastructure currently running through the US legislature and includes provisions to raise $28 billion from crypto investors. Some traders warn that it could “kill” the industry.
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“This is a deeply misguided provision that, if adopted, would do far more harm than good to US interests,” Jake Chervinsky, a crypto-focused attorney, wrote in a lengthy Twitter thread explaining how the bill could impact emerging crypto industry.
The bill, which this week passed an early Senate vote, proposes taxing Bitcoin and cryptocurrency profits to fund US infrastructure investments, with the definition of brokers broadened to the extent that crypto exchanges and fund providers need to gather more information about them than they currently do.
According to a copy of the bill seen by Coindesk, any broker who transfers any digital asset will need to file a return under a modified information reporting regime.
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“The provision includes updating the definition of broker to reflect the reality of how digital assets are acquired and traded. The provision further makes it clear that reporting broker-to-broker applies to all transfers of covered securities within the meaning of section 6045(g)(3), including digital assets,” the document said.
“Everything is moving fast, which can be scary,” Chervinsky wrote, adding, “Don’t panic. These rules are not final and can still be changed.”
