By now you must have heard that the Senate has passed a one trillion dollar infrastructure bill. In it it mandates that "any broker (a person or company who regularly provides a service that executes transfers of digital assets on behalf of another person) to report those transactions to the IRS, just as securities brokers must do for stock and bond trading."
It may not sound like a big deal as brokers are already reporting stock transactions to the IRS. The problem with the bill is its definition of "broker." As written, it would include crypto miners, developers, and stakers. How in the world does the Senate expect miners and developers to track the gains of crypto users? They don't have customers. So they can't comply with the law. It's like asking the developers who write the trading software for Fidelity or Ameritrade to track the gains of everyone who uses their software.
It's pure insanity and it is just a joke!!
We all know that governments in general are hating Bitcoin and other cryptos! Here is a good writeup about why:
Central banking and fiat money only exist to steal time and money from the people and redirect it to the politically connected. Time and money represent life, so they are in fact stealing your life.
Any honest assessment of the situation would reveal that fiat money and central banking are tyrannies of historic proportions, like feudalism and slavery.
Bitcoin can give monetary sovereignty to the individual and render central banks and their colossal frauds obsolete. That's no small accomplishment. That's why they are so threatened by it. It's a historical development that profoundly alters the status quo between the rulers and the ruled. It's similar to the inventions of gunpowder, the printing press, and the internet.
That's why bitcoin is the most political of all assets.
Bitcoin shares many of gold's monetary characteristics – especially its resistance to inflation. That is what initially attracted me to it. Like gold, bitcoin does not have counterparty risk. Bitcoin and gold are the only primarily monetary assets that aren't simultaneously someone else's liabilities.
Here's the bottom line.
Bitcoin is a hard money monetary system that is accessible to anybody and controlled by nobody. It works in the real world, and it solves one of mankind's biggest problems: storing and exchanging value reliably. That's why I find bitcoin interesting and recommend everyone hold some.
While some governments have tried to kill cryptos in its entirety, its decentralized nature has made their attempt worthless. One good recent example is China. The East Kingdom has repeatedly tried to crack down on crypto trading. And in May, it announced a near-total ban on crypto mining. We saw bitcoin drop as much as 53% on the news. But all China did was force its miners to move to friendlier jurisdictions. These guys have now relocated and restarted their operations… And bitcoin has rallied as much as 59% of its recent lows.
Therefore, although the Senate bill may seem like bad news for the crypto sector... the market clearly didn't mind. Quite the opposite, in fact as the whole crypto market has moved up quite substantially since the bill was passed. Actually in a way, the crypto world likes such kind of regulations, even though they are way overkilled. The most fearful risk for the crypto crowd was to see a total ban of Bitcoin etc in a major country like the US. Now with this bill passed, it actually means Uncle Sam wants to keep Bitcoin and its digital descendants around as they want to raise $28 billion in taxes from the crypto industry in the next 10 years.
As Jeff Bandman, a former senior official at the Commodity Futures Trading Commission, put it...
The government is going into partnership with the crypto industry. The government didn't abolish tobacco - it taxes it. The government taxes alcohol. The government taxes capital gains and income, and all kinds of other things. |
Crypto now has an official, government-sanctioned role in the U.S. economy. And we all know that once the government gets used to this tax revenue, it won't give it up.
As such, I like the joke and I'm laughing all the way around to celebrate a major victory for Bitcoin and the crypto industry!!đŸ¤—đŸ’ª✌
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