Crypto News Recap: Bitcoin Rebounds to Highest Since May, US Senators Brawl Over Crypto Tax

Published August 9th, 2021 - 06:30 GMT
Crypto News Recap: Bitcoin Rebounds to Highest Since May, US Senators Brawl Over Crypto Tax
The US House of Senates is looking for ways to fund the $1 Trillion bipartisan infrastructure bill by pitching 2 amendments that would pose stricter laws on how cryptocurrencies are taxed. (Shutterstock)
Highlights
Here is a brief recap of all the latest crypto headlines

If you thought crypto hype had ended, you need to think again. Despite Regulatory uncertainty and having the tech provision tax that sparked controversy in the crosshairs, it was a bullish week in the crypto world and bitcoin is climbing back up in full force trading at $43,620 at the time of writing. 

You’ve probably had enough of confusing news about the two new competing tax amendment drafts to the US infrastructure bill that divided senators. And we're here to clear of the confusion, so keep on reading to know what each of them means to the industry! But first, let's check out the charts.

Bitcoin Chart

bitcoin

Source: coinmarketcap.com/tradingview

 Crypto Charts

crypto

Source: coinmarketcap.com

All You Need to Know About the 2 Competing Crypto Tax Amendments in the US

The US House of Senates is looking for ways to fund the $1 Trillion bipartisan infrastructure bill by pitching 2 amendments that would pose stricter laws on how cryptocurrencies are taxed.

The first draft of the provision mandates "brokers" to report gains of transactions that exceed $10,000 to the US Internal Revenue Service (IRS) and to file a type of 1099 form for transactions. However, this proposal has sparked wide "linguistic" controversy as the term “broker'' is defined as “any person who (for consideration) is responsible for regularly providing any service effectuating transfers of digital assets on behalf of another person”, which was perceived as a very broad definition by crypto enthusiasts. 


The Wyden-Toomey-Lummis proposed amendment

In bids to change this broad definition and clear up this confusion, some US Senates proposed an amendment to the bill excluding crypto miners & developers because they don't sell any crypto nor direct customers whose information needs to be reported to the IRS, a proposal that was welcomed by the crypto community.

The Portman-Warner-Sinema proposed amendment

However, another group of senators submitted another amendment because the first one is “weakening the legislation’s proposed cryptocurrency overhauls”.  This proposal has slightly altered the definition of “broker”  excluding just “proof of work” miners, The Washington Post published.

Of course, this proposal was met with wide backlash from crypto advocates as it may even lead to blockchain developers, validators, and environmentally friendly Proof of Stake miners considering leaving the US and looking for other countries to operate, killing all possible DeFi projects. Both Coinbase CEO Brian Armstrong and TechnoKing of Tesla Elon Musk have voiced their ire on this proposal.

Both suggested proposals are now awaiting Senate vote before the final bill leaves to sit on Biden’s desk, whose administration has already shown some backup for the latter proposal.

 China’s Beijing Subway Integrated Digital Yuan in Payment Ecosystem

The subway system in the Chinese capital Beijing has finished piloting the country’s CBDC dubbed as Digital Yuan and now has moved to officially integrate as a new form of payment across 428 subway stations in 24 lines, according to the Block

The new payment method is only available for those who have a bank account at the Industrial and Commercial Bank of China, and have downloaded the mobile app that is linked with the bank account, The Global Times reported.

Nuclear Power Plant Calls on Cryptocurrency Mining Firms for Cooperation

A number of nuclear power plant owners have teamed up together to announce their willingness to provide crypto mining firms with their electricity need to run ‘computer centers that “mine” zero-carbon bitcoin’.

The owner of the Susquehanna Steam Electric Station, Talen Energy, and cryptocurrency mining company, TeraWulf Inc has joined forces to inaugurate a $400 million, 300MW nuclear-powered bitcoin mining facility adjacent to its twin reactors in northern Pennsylvania, US.

The firm presentation commented: “As the demand for energy increases among data center and cryptocurrency processing clients, so does the call for decarbonizing these energy sources. Talen Energy is constructing a hyper-scale data center campus adjacent to its Susquehanna nuclear generation facility. It will provide low-cost, reliable, carbon-free power to the data center clients on campus. This allows clients to benefit from carbon-free, 24/7 power being supplied directly to the campus, without the intermittency that renewable energy can experience, or requiring fossil fuels’.

Upcoming Activities

Upcoming ICOs

Upcoming Airdrops

Podcasts Worth Listening to 

Disclaimer: The Cryptocurrency market is considered highly speculative, risky, and largely unregulated. Anyone mulling investing in it, should be aware there's a risk of losing their entire investment.


© 2000 - 2021 Al Bawaba (www.albawaba.com)

You may also like