What is this $1.2 Trillion Infrastructure, Bill & How does it impact the crypto world?

All the fud and fuss around the controversial infrastructure bill in the context of crypto “broker definition” has taken a new turn, with the senate passing the $1.2 trillion infra bill with the majority voting down all the proposed amendments regarding crypto tax reporting.

Now this bill will move to the House of Representatives, where it’s set to be debated and reviewed further. You all must be wondering and scratching your head with this one big question?

Well, let me help you with this!

This bill was proposed on Aug 1 2021 by a group of US senators, they named the bill as ‘’$1.2 trillion bipartisan infrastructure bill’’. The core objective of the bill is to spend heavily on improving US infrastructure by building roads, bridges, ports, and high-speed internet, etc.

What is the core feature of this bill?

• This bill is documented with 2702 pages
• It plans to spend $550 billion in new infrastructure expenditure
• This $550 billion comes on top of $450 billion of funds that were approved previously.
• A $66 billion has been planned to be invested in strengthening the railway service and infrastructure
• It also proposes to spend $73 billion to facilitate America’s switch from fossil fuels to clean, renewable energy
• About $65 billion has been allocated to enhance the internet speed for all Americans with the help of broadband infrastructure
• $55 billion will be invested to ensure that clean drinking water is made available to the Americans

This much debated and discussed infra bill became controversial when it made the provision to define the term “broker ”. This term in the bill was coined with the sole objective to mark those traders, crypto developers, and business ventures dealing in crypto mining validating and staking as brokers and thereby enforcing the clause of tax reporting requirement against all such entities.

Crypto investors, developers, and the community at large see this as extremely unfair and are worried about the short-term and long-term implications of this if it gets passed in the house of representatives too.

The Electronic Frontier Foundation pointed to “a clear and substantial harm” in the “surveillance” these tax reporting requirements could impose on crypto users.

Well, I being a big fan of crypto innovations do get concerned about such unclear definitions and haphazard moves, especially when these groups of people have not done much homework in understanding the underlying technology and its working, By no mean, the term broker fits aptly for the developers and miners involved in crypto innovations like mining, trading, and staking and so the tax reporting enforcements seems to be too harsh here.

This bill if gets the nod from the house of representatives may have some sentimental impact especially for US-based crypto investors, But I strongly believe that this time shall also pass by and it will not have any major impact.

Are regulations needed in the crypto world?

Having said that I do feel that healthy regulations do have some space in the crypto world but the way should get rolled out has to be right and should have honest intention.

There are many rug pull events being reported in unregulated Defi projects, where the platform goes out of fuel in no time due to the malicious attack from the hackers who manipulated the smart contract bugs to do so.

Refer to this new event just reported a few hours back today:

Also, many Defi projects like this, are out there purely as scams, promising high returns trapping new-age crypto investors to lose all their hard-earned money. Some regulations to crack down on such scams, which can safeguard investors’ money have to be thought through and implemented.

“I know it is easier said than done, the challenging part will be in preserving the core fabric of decentralization when thinking of any kind of regulation. ”

I feel :

“Any bills like this cannot be used to act like dictators. People’s welfare and privacy have to be at the core and any kind of mailified intent to snatch the power from the hands of those very people who make this democracy function will have a very deep-rooted impact on the nation who blindly want to enforce their idea with half baked knowledge.

Understanding the what & why behind crypto technology is a must for politicians who have the greater responsibility of framing the policy which can make or break the nation as a whole

Opinions expressed here at CryptoWise are not investment advice and are only for educational purposes. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility

Source: https://medium.com/crypto-wisdom/what-is-this-1-2-trillion-infrastructure-bill-how-does-it-impact-the-crypto-world-cd4036e835ae?source=rss——-8—————–cryptocurrency