The Bitcoin Market Remains Unfazed by the US Crypto Tax Proposal
The legislation of the US bill has had little impact on the Bitcoin (BTC) market, and the likelihood of major effects is slim.
Since news of the US bill demanding cryptocurrency taxes from investors to raise $28 million has come to light, there has barely been any reaction by the Bitcoin (BTC) market.
The plans for legislating the bill were issued last week, where the infrastructure bill mandates crypto users to conduct information reporting and file returns on transactions and transfer of digital assets.
The sensitivity of the cryptocurrency markets to new announcements is remarkable, but news of the soon-to-be legislated bill and Amazon supporting Bitcoin (BTC) payments have yielded no significant reaction or impact.
Since the climb of Bitcoin (BTC) recently after the emergence of the bill announcement and the dive shortly thereafter, Oanda Senior Analyst Edward Moya strongly maintains that this is not a disruption of the crypto market. Nonetheless, the continuous stream of bullish macroeconomic developments that could change the current trading stream of Bitcoin (BTC) was halted.
Additionally, Moya supports that the demoralization of potential investors and retail traders from investing in the crypto market is likely to happen, the crypto market as a whole will remain rather unaffected by the new US infrastructure bill.
The bill might just provide an advantage for the cryptocurrency market. According to crypto trader Henrik Kugelberg, the positive influence will give the crypto market a certain familiarity and quite a grip on existing and future investors. After all, reporting earnings and paying taxes is a mainstream task that people continuously do, and if anything, this will make the crypto market conventional.
Related: New SEC Chairman Is Going Hard On Crypto
Moreover, Quantum Economics analyst James Deane deems the US as a mere dominion over the global scope of the crypto market and suggests that even if there would be an impact in the US, the solution is as simple as the limited reach of impact outside the States. Some may be dissuaded from investing, but their absence will be nullified by others that appreciate the newfound visibility of the crypto market and find this development reassuring.
The inclusion of the government according to Deane is a positive change due to the regulation being clear and anyone can invest without being intimidated by potential consequences; in this way, every investor knows that they have to do information reporting and pay taxes.
Since crypto industry lobbyists actively seek to minimize additional taxes on cryptocurrencies, Deane holds that the enactment of the US infrastructure bill is well into the future due to the red tape associated with the proper negotiation of the bill and the approval of President Joe Biden. This process is likely to take as long as 2 years.
Similarly, Needham & Co. VP John Todaro is not concerned with the short-term impact due to the lengthy process of the enactment. Because of the broad scope of entities within the crypto market, the contents of the bill could be altered not to include every entity in the crypto market that will be subjected to these regulations including miners.
Also read: As Bitcoin Use Develops, PayPal is Putting Together a Crypto Unit in Ireland