The billionaire investor, Mark Cuban, has indicated that the parts of the Infrastructure Act relating to cryptocurrency brokers can encourage the development and adoption of digital currencies and blockchain technology in general.
The libertarian investor warned in an interview with The Washington Post that the inclusion of the clause might stop the growth motor of cryptocurrencies like bitcoin. He stated it would be as if he had stopped e-commerce (or internet shopping) in 1995.
The Senate has included a new provision in their infrastructure bill that addresses cryptocurrency taxation. A cryptocurrency broker can mean many things. It’s considered an entity that regularly supplies services to other people that transfer digital assets on their behalf.
Some people believe this section would enable Bitcoin miners to be part of the arrangement. The main reason for this is that these businesses or individuals will not report cryptocurrency amounts higher than $1000 to the IRS. Prediction is straightforward. These entities will relocate to the United States.
To help the government, lawmakers are drafting the new bill. However, cryptocurrency advocates are strongly opposed to it. Cryptocurrency miners have recently been labeled as brokers, placing even more responsibility on those who use the network to earn currency and maintain the integrity of the blockchain.
Both Right campaigners and crypto enthusiasts raised concerns about the possibility that cryptocurrency colonies could be required to gather more information about users.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.