The content of the US Infrastructure Investment and Jobs Act shows that crypto cannot hide and the government wants technologies that will normalize crypto: ” Buried in the bill is a provision that would require the reporting of cryptocurrency transactions to the I.R.S”. IRS is the US tax agency.
“The industry is fighting this, calling it a job killer, but it looks like it just puts crypto in the same category as many other financial assets. Maybe it’s just me, but if tax avoidance is central to a relatively developed industry’s growth plan, it doesn’t sound like a winning political argument.” (Fortune)
As that was happening, the Securities and Exchange Commission’s head threw a bomb against the cryptocurrency sector, calling for more regulation and oversight of digital currencies and assets. “Right now, we just don’t have enough investor protection in crypto,” said SEC Chairman Gary Gensler, who went on to compare the assets to the “Wild West.”
The Securities and Exchange Commission will regulate cryptocurrency markets to the maximum extent possible using its existing authority, Chairman Gary Gensler said Tuesday, while also calling on Congress to grant the agency more scope and resources to oversee the sector.
Calling the asset class rife with “fraud, scams and abuse,” Mr. Gensler signaled the SEC is likely to become more active in policing crypto trading and lending platforms, as well as so-called stablecoins.
“We just don’t have enough investor protection in crypto. Frankly, at this time, it’s more like the Wild West,” Mr. Gensler said in prepared remarks to the Aspen Security Forum. “We have taken and will continue to take our authorities as far as they go.”
U.S. financial regulators have struggled to get their arms around the fast-growing world of cryptocurrency and related financial technologies. Unlike in the securities and derivatives markets, no single regulator oversees crypto exchanges or brokers. As the market value of the asset class has exploded to more than a trillion dollars, so have scams.
Mr. Gensler said large parts of the sector operate outside of regulatory frameworks that seek to protect investors and consumers, reduce crime, promote financial stability and protect national security.
Bitcoin went marginally down after his remarks. But that may not be a bad thing. Yes, by the time these processes are over, the stable state of Bitcoin will arrive, and by then it would become like a typical asset class which would be more widely investable.
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And of course, the illusion of crypto “hiding’ from government will go because government will be in charge!
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So, in the eyes of government cryptocurrency is just ‘asset class’ and not ‘currency’? That distinction will probably settle both the rift and enthusiasm surrounding digital coins.
Government doesn’t share power, it’s total control, that’s the only way it can be in charge!
Well, it’s a case of creating one more economic sector, with enough vibrancy and enthusiasm, at least to keep a good portion of world’s population busy, because the world needs to find ways to keep more people busy.
We are going back to where we began, albeit with new tech and players, but the constants never change: winners and losers…
The U.S Government may be Satoshi Nakamoto