Law Decoded: Which currency is the paycheck of your city’s mayor in? Nov. 1–7


While cryptocurrencies have long emerged as an independent political issue, they are sometimes intertwined with broader dynamics in the political process. The infamous infrastructure law – one of the mainstays of the Biden administration’s economic agenda – was abruptly passed in the US House of Representatives last Friday, despite initial approval by Democrats in Congress to vote primarily on the party’s other legislative priorities. After moving from 228 to 206, the bill is moved to President Biden’s desk. In addition to allowing massive spending on roads, bridges and broadband Internet access, it contains several cryptocurrency-related clauses that have remained unchanged since the crypto community publicly protested its implicit addition to the bill.

As disappointing as it is, this setback is not final: Proponents of cryptocurrency have not yet used the full range of tools available to challenge controversial tax reporting and financial control rules.

Below is a consolidated version of the latest Legislative Newsletter. For complete information on the political developments over the past week, subscribe to the full newsletter below.

Better ways, more control
The definition of an “intermediary” in relation to an organization that facilitates cryptocurrency transactions in the context of tax reporting is perhaps the main problem that cryptocurrencies have raised in the language of invoicing infrastructure. The problem here is that, as it is now, the definition can include actors such as node operators or protocol developers who require them to report counterparty information in a transaction to which they do not have access, which makes compliance impossible. However, it remains for the Treasury to define the exact rules to enforce the rule that gives the crypto industry an opportunity to try to negotiate reasonable terms.

Another problematic point that later attracted attention was the delivery of the 6050I, which imposes extensive monitoring requirements on those who receive $ 10,000 or more in cryptocurrency. Many observers called the rule unconstitutional, and Coinbase chief Brian Armstrong called it a “disaster.”

Crypto Mayors Race
Meanwhile, the first Bitcoin mayor appears in New York. New York is known for being a tough jurisdiction for cryptocurrency companies to operate, but the situation may improve when Eric Adams joins on the first day of 2022. He promises to make New York a cryptocurrency-friendly place by encouraging talent in cryptocurrency. associated jobs and the removal of barriers that have held back industrial growth, and even considered a city coin project like MiamiCoin. Although Adam’s defense of Bitcoin remains exclusively in the propaganda area, it is still a great benefit for the industry to have a senior official in one of the world’s largest financial centers that promotes cryptocurrency.

Dude, where’s my Bitcoin ETF?
Representatives Tom Emmer and Darren Soto, firm hearts in the crypto industry, put SEC Chairman Gary Gensler in his place because of the agency’s apparent reluctance to approve bitcoin fund-based exchange fund requests instead of bitcoin futures. The focus of their letter to Gensler is that the regulator’s argument about derivatives that provide better investor protection than those that track spot prices does not hold water.



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