The cryptocurrency market reacted positively to reports of a change in the text of an amendment to cryptocurrency regulation in the United States. US lawmakers reportedly will not equate validators, node holders, and stakers with brokers.
On August 10, the bitcoin price fluctuates around $46,000, adding about 3% per day. Analysts expect the formation of the so-called “golden cross” in the market, a graphical pattern that represents the intersection of short-term and long-term moving averages from the bottom up. Typically, the 50-day MA is used as the short-term moving average and the 200-day MA is used as the long-term average. The golden cross is traditionally considered a harbinger of strong bullish gains. According to trader Rekt Capital, there are about three days left before the new golden cross for bitcoin comes to the market. $47,000 remains the decisive level for the breakout. Achievement of this mark depends on the results of the vote on the bipartisan infrastructure bill, which involves a change in taxation and financial reporting requirements for cryptocurrency organizations in the United States.
Earlier, crypto amendments to the infrastructure bill were presented to US lawmakers, which expanded the use of the term broker to almost all participants in the cryptocurrency market, including node operators, stakers, validators, software developers, and so on. It was proposed to oblige them to provide the tax service with data on all transactions, their senders and addressees. All representatives of the crypto community, including Elon Musk and Jack Dorsey, spoke out against the amendment. They noted that network participants, such as stakers or miners, do not have the ability to collect such information, and therefore the ability to comply with new stringent requirements.
On August 9, the amendment, which was supported not only by Republicans and Democrats, but also by the US Treasury, was rejected, as its adoption required unanimous approval. The vote on the revised draft amendment is expected on August 10. A broker is now defined as “any person who (for consideration) is responsible for regularly providing any service effectuating transfers of digital assets on behalf of another person” and excludes entities that verify transactions (i.e. miners or stakers) without providing other services, or organizations that sell hardware or software that allows clients to manage private keys.
“We’ve worked with the Treasury Department to clarify the underlying text and ensure that those who are not acting as brokers will not be subject to the bill’s reporting requirements,” the US Senate working group said in a statement.
On August 10, the US Senate will have to come to a consensus and pass an infrastructure bill that will help the White House raise $1 trillion for infrastructure projects.