Bitcoin mining is the focus of the new crypto provision under the Infrastructure Investment and Jobs Act which imposes tighter reporting requirements on digital assets.
An analyst dubbed it as a “miner-as-broker” policy that aims to improve the collection of tax revenues of digital asset capital gains.
This will be implemented through strengthening the capacity of tax collectors to monitor crypto trades.
Bitcoin miners located in the United States will be put through enhanced regulations for reporting to the nation’s Internal Revenue Service.
Another analyst said that bitcoin miners who will comply with the requirements need to pay the costs.
It is despite how much bitcoin mining power they have and even before they mine one block.
Therefore, this will prevent entry and it will presumably cause more jurisdiction of mining power.
Moreover, policymakers want digital asset users to be more responsible for following the “know your customer” rules since most cryptocurrencies have a pseudo-anonymous nature.
The new policy will raise the cost of bitcoin mining in the United States which will possibly reduce the amount of mining that takes place.
An analyst gave two related consequences on the proposed bill. The first is higher concentration and the second is more subtle.
The first outcome will put bitcoin miners near the mark where they can effectively change the ledger of the blockchain.
The second result will place the profitability of an attack higher when the cost of bitcoin mining crashes.
Furthermore, policymakers show readiness to enhance the regulation and the reporting of crypto transactions whether the bill will be approved or not.
Meanwhile, the debate is mostly concentrated on the tradeoffs of an enhanced crypto trading observation of the US government.
Cryptocurrency Prices Rallied
On Tuesday, August 10, the price of Bitcoin soared 5.33% or 2,331.50 points to $46,108.92. It has a market capitalization of $865.95 billion with a 24-hour volume of $41.72 billion.
Likewise, Uniswap spiked 10.97% or 2.93 points to $29.76. It has a market capitalization of $29.76 billion with a 24-hour volume of $676.64 million.
Consequently, Chain Link gained 4.74% or 1.12 points to $24.34. It has a market cap of $24.34 billion and a 24-hour volume of $956.24 million.
Also, Polkadot increased 2.80% or 0.56 points to $20.65. It has a market capitalization of $22.33 billion and a 24-hour volume of $994.38 million.
Additionally, Litecoin progressed 7.28% or 11.11 points to $163.87. It has a market cap of $11.19 billion and a 24-hour volume of $3.28 billion.
Lastly, Ethereum smashed 4.23% or 127.83 points to $3,148.51. It has a market cap of $368.44 billion and a 24-hour volume of $35.62 billion.