On BTC one of the most bitter battles in American politics is taking place, with two opposing sides that now seem to be clearly led on one side by the president Joe Biden, on the other from Republican Senator Ted Cruz.
A battle that will also pass from Infrastructure Bill, group of standards patchwork which include a little bit of everything, including a close up exchange, crypto-broker And taxation. Ted Cruz, who already in the recent past has spent himself very favorably on the introduction of BTC in Congress, he would like to settle this battle. And given its political relevance, it could be a very good sign for the world of BTC.
Infrastructure bill has turned, as expected, into a cauldron containing rules of all kinds, and not just the financing of infrastructures in the strict sense. Within it – which has triggered a panic that has not yet returned to the markets – also the new rules that define the crypto broker, in formulations that could cause problems for the sector – and a hint of a compressive taxation of the sector
Ted Cruz, that already a few days ago he had spent on BTC in Congress took the ball and declared, through his press office, that he wanted to fight to eliminate these formulations, which would be particularly restrictive also for the world of exchanges.
A predictable situation, since there had already been one such a battle to August, then postponed when the bill it would pass through the hands of Congress. With feelings that seem to be, at least for the moment, alternating. Because precisely a part of the Republicans would be in favor of a change, while the more radical wing on cryptocurrencies would like to completely expunge the terms introduced.
As a deliberative body, the Senate should have done its job better, organizing hearings to fully understand the consequences of introducing new legislation on an emerging industry, before jeopardizing the profits and privacy of the Americans who participate in it. I call my colleges in the Senate with the utmost urgency to remove this clearly harmful language, which will create regulatory uncertainty and turn into an unnecessary barrier to innovation.
Thus re-proposing a theme that was the hot one even in the phase of ETF approval, with the same parts in game.
What does this mean for BTC and the crypto sector?
This is good news, although we are sure that, in the medium and long term, the sector will not need to resort to the help of politics in any way.
Why good news? Because a relevant part of the American Congress, although a minority, it has decided to defend the sector, at least apparently without ulterior motives. Something that could make a difference in the short term – as happened with the ETF finally unlocked also in the USA. The battle will be long – with the new president of the USA who, no one makes any more secret of it, would like to regulate the sector in detail.