Bitcoin maintains value after approval of the Infrastructure Law

The bitcoin price remains above $45,000 per unit even though the US Senate decided to pass the original Infrastructure Bill, setting aside the proposed amendments.

This Tuesday, the United States Senate approved the draft Infrastructure Law, which will go to the House of Representatives next month. Despite being negative news for the crypto industry, due to the tax implications that this regulation brings, the price of Bitcoin (BTC) it is holding steady, trading above $45,500 per unit at the time of writing.

The United States Senate approved, with 69 votes in favor and 30 against, the original Infrastructure Bill presented at the end of July. The amendment proposed by pro-crypto senators Cynthia Lummis, Pat Toomey, and Ron Wyden and the one proposed by senators Rob Portman, Mark Warner, and Kyrsten Sinema were defeated in the Senate, as was the last-minute compromise agreement involving the six senators.

Since the approval of the bill, several US congressmen, politicians and leaders of the crypto community have spoken out against the regulation, which would end the innovation of cryptocurrencies. cryptocurrencies in the country.

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a tragic mistake

Although the crypto community assures that it will not give up, and that it will take advantage of the presentation of the project before the House of Representatives to press for an amendment that minimizes the risks for the crypto industry and innovation, several political representatives point out that the approval of the bill it is a tragic mistake for the United States.

Senator Lummis, recognized in the crypto world as one of the most friendly political leaders with the innovation of cryptocurrencies, stated that the approval of this law demonstrates the little knowledge that US legislators have about cryptocurrencies and digital assets, which they decided to approve. the bill behind closed doors without considering the opinion of experts and stakeholders within this industry.

Likewise, Senator Ted Cruz pointed out on his Twitter account that US legislators are making a mistake with the imposition of the Infrastructure Law in the country, which will “erase” a part of the digital industry; causing the country to expel innovation and lose its global technological leadership, unconsciously favoring other nations.

The Infrastructure Act seeks to collect some $28 billion in taxes from the crypto industry, over a decade beginning in 2023. However, the broad terms and definitions introduced by the original bill approved by the Senate, especially the term “Broker ”, seeks to include all cryptocurrency participants as “brokers”, subject to tax obligations. This suggests that both custodial and non-custodial entities involved in the crypto industry will be included in the scope of the law, thus subject to regular reporting and filing of taxes in the country. Non-custodial entities are understood to be those that do not provide services or have clients, such as miners, node operators, validators, and software developers.

Several leaders in the crypto community have also spoken out against the new bill, arguing that the political battle for crypto is just beginning.

Bitcoin holds its value

Bitcoin, the leading cryptocurrency in the industry by capitalization, maintains its value above $45,500. According to data from CoinMarketCap, BTC has grown close to 20% in the last week, going from a value of $37,000 in the middle of last week to $45,688 per unit currently. The market capitalization of bitcoin exceeds 857,000 million dollars.

Bitcoin price as of August 10.
Source: CoinMarketCap

Bitcoin began to recover its value since July 20, rising approximately 53% to date. The bitcoin price at the end of last month was $29,770, so to date it has recovered about $16,000 per BTC.

The broader cryptocurrency market has also recovered significantly, showing a market capitalization of over $1.88 trillion at press time. Within this value, Bitcoin ranks first with a dominance of 45.5% of the market; while ethereumthe second largest cryptocurrency in the industry, commands 19.6% with a market cap of $369 billion.

Continue reading: Bitcoin price rises and boosts shares of related companies