Market Analysis Report (05 Aug 2021)

The cryptocurrency community in the United States is rallying to change what are seen as “unworkable requirements” in the 2,700-page infrastructure bill caused by poorly-worded language that “could mean anything.”

Owen Lay, an analyst at Oppenheimer, explained to CNBC that the problem is the definition of a digital asset “broker.” The bill defines it as any party “responsible for regularly providing any service effectuating transfers of digital assets on behalf of another person.”

The poorly worded regulation, Lay says, could lead to expanding the reporting requirements applied to brokers and vastly increase operational costs. He said the wording “can mean anything” and added, “if I transfer bitcoin to you, then it can mean I become a broker.”

In a joint statement the Blockchain Association, Coinbase, Coin Center, Ribbit Capital, and Square expressed concern over the language included in the infrastructure bill, as it will place “unworkable requirements on crypto technology.”

The statement details “brokers” could be miners, software and hardware wallet makers and others who don’t engage in trading. It would also make possible a “massive increase in financial surveillance, potentially requiring companies to report information about individuals  even if they are not customers.” It adds:

“[The development of crypto] should not be subject to potentially devastating legislation without public participation and public comment.”

Crypto lawyers including Jake Chervinsky, who’s currently working as the general counsel behind Compound, are urging community members to call their senators and inform them they support the amendment proposed by Senators Wyden, Lummis, and Toomey.

Source: https://www.cryptocompare.com/email-updates/daily/2021/aug/05/