What Does The USA's Bipartisan Infrastructure Bill for Mean For Crypto?

This move by the US government has shaken the industry, which was earlier deemed as a crypto-friendly nation. The consequences – it made that market turn red and continues to stay bearish even in 2022. It is still being seen as an unfavorable move for the crypto industry’s growth, which is fairly new to the world.

Key Highlights of the Bipartisan Infrastructure Bill

Any business engaged in the following must report to IRS:

What US House of Representatives State?

Under the Bipartisan Bill, the provisions have been made to study blockchain technology and digital tokens (or cryptocurrency). Also termed the “Consumer Safety Technology Act,” the bill is centered around the protection of consumers. The bill also calls for the Consumer Product Safety Commission to the deployment of AI programs to aid consumer safety inspection, identify product hazards, and track harmful trends. 

The Consumer Safety Technology Act includes two parts:

Both these acts mandate the FTC to report unfair and deceptive acts or practices relating to digital token transactions. The House stated that the bill should only worry “unscrupulous” companies or individuals. The House also added that it is only to prevent ill activities like tax evasion and crypto-based ransomware attacks. 

Despite having multiple ‘positive’ provisions, the bill does not offer clarity on significant terminologies or statements. It is also the reason that companies and individuals have not been fully able to accept the bill for an upward market trend.

Bipartisan Crypto Bill Followed by Bearish Market

After the assembly passed the bill, the cryptocurrency market saw a huge dip overnight. When the bill was passed last year, the prices of Bitcoin and Ethereum plunged below USD 59,000 and USD 4,200 respectively after a moderate bull run. Bitcoin currently struggles at USD 38,640 and Ethereum at USD 2,820 on CoinMarketCap at the time of writing.

After the assembly, the US Treasury Secretary called Bitcoin an ‘extremely inefficient’ digital asset, making it clear for the industry to not look forward to crypto industry-friendly rules. Treasury Secretary added, “It is a highly speculative asset. I think people should be aware of how volatile these assets are, and I do worry about their potential losses.”

The Treasury has still not defined certain words in the bill like a broker, which caused an upheaval in the industry.

Experts say that the assets are susceptible to high volatility resulting from any government regulation or celebrity endorsements as it is fairly new.

What Should Investors Do?

To avoid losses from market volatility, the industry experts always ask their investors to HODL for the long term.

If you, as an investor, wish to stand on the right side of the saga, here’s what you should do:

The news negatively affected the crypto market, which continues to stay bearish in 2022. While waiting for better clarification and modification in the bill for better suitability, it is time for us to make better investment decisions that help grow this industry.