Cryptocurrencies

What does the Congressional battle imply for Bitcoin? Keep an eye out for the next 2 weeks

According to analysts, the next two weeks will determine if the US Congress will have a fresh round of negotiating on Bitcoin and cryptocurrencies. The House of Representatives adopted a framework for the 2022 budget and intends to spend billions of dollars on President Joe Biden’s domestic agenda on August 24. The budget framework, unlike the renowned infrastructure bill that accompanies it, has yet to pick cryptocurrencies.

Moving days are on the way in the United States Senate


However, this is only a recommendation for the time being. Capitol Hill has been a virtual ghost ship since the night the budget was adopted, with pro forma session sessions lasting less than 10 minutes. Backstage, though, House Democratic committees meet with their Senate counterparts to complete that framework. They make available data for both budget accounts and legislative support. And they both want to make sure that anything they come up with is as easy to implement as possible.

We must keep the 51-vote majority by approving the budget and working with House and Senate Democrats to achieve an agreement so that the House may vote on the Senate-passed Build Back Better Bill.

The ongoing procedure, however, is “unofficial” and mostly behind closed doors. Given the breadth of Biden’s agenda, this will necessitate some additional income generation, which will necessitate a return to the Treasury’s previously disclosed revenue wish list.

Bitcoin and other cryptocurrencies were attacked

The Treasury’s “General Disclosures on the Administration’s Income Offers” document outlines the administration’s intentions for where revenue will come from. The Green Paper was the first to stress the necessity to designate crypto players as “brokers” for tax reporting reasons.

According to a story published earlier this week, the Treasury is pressuring Congressional Democrats to incorporate the second missed crypto provision from the Green Paper in the budget. This clause requires US crypto brokers to disclose foreign account holders of US accounts to foreign tax authorities more frequently. The Treasury’s words were as follows:

To guarantee that the United States can benefit from a worldwide automated information exchange system for cryptocurrencies and receive information about its beneficiaries, the United States must jointly disclose information on foreign rights holders of specific assets to intermediaries.

Senator Ron Wyden, who leads the Senate Finance Committee, which handles taxation and will play a significant role in the budget, is a plus for crypto supporters in Washington. During the infrastructure bill discussion, Wyden emerged as a strong advocate of crypto transaction privacy, and ultimately refused to endorse the resulting compromise since it did not properly safeguard network members.

What does the Congressional battle imply for Bitcoin? Keep an eye out for the next 2 weeks
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