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The US House of Representatives approved a $1 trillion infrastructure bill. This has caused controversy among policymakers and stakeholders from across the country. It is now up to President Biden, however, to sign it into law. The reality is that cryptocurrency entrepreneurs and investors are struggling to understand the implications of certain bills.

Bill Was Question Infrastructure

Brian Armstrong, Coinbase CEO, was among the first to voice concern. Then, on his Twitter wall, he wrote:

“If I understand correctly, clause 6050I of this infrastructure bill is a disaster. A criminal code that can block a lot cryptographic activity (like Defi).

He said:

“Our team is continuing to investigate this matter to determine the true impact.”

The Crypto Innovation Committee at the same time made the announcement, dissatisfaction. CCI has shown that even though they are not strict “middlemen”, other parties such as developers and miners can regulate. The requirements could also be responsible for the “inappropriate Financial Oversight” that he claims he denied. The CCI asked Congress for clarification.

Do You Need Panic In Order To Cope With it?

In the part infrastructure bill of the US tax code, 6050I is the main source of FUD. This section could modify so that recipients of “digital assets”. If they give it, will respond for collecting personal information from the sender. And then storing it and reporting it back to the government within a specified time.

Read Also: Officials In Pakistan Are looking to regulate the use of crypto

The infrastructure bill will become law if it passes. It will be effective from 2023. Abraham Sutherland, an independent attorney, explains this in his report on 6050I:

“The amendment to section 6050I proposes that anyone who receives more $10,000 in digital assets must verify it in different ways. circumstances. Individuals’ personal information, including social security numbers. Signing and submitting a report within 15 days. Non-compliance can result in mandatory fines, and could lead to up to five years imprisonment.

The standard DeFi Principles are infringed by the KYC requirement. Even if the recipient wants to comply, it is unlikely. It may not be possible to verify the information or gather it. Therefore, this could mean that anyone in the crypto industry – lenders, shareholders, customers, traders, investors and companies – may send to jail for not complying.

What about high-volatility assets that fluctuate easily beyond and below the $10,000 threshold We’ve seen that even Coinbase needs more research.

Privacy and Peace

Peter McCormack, host of What Bitcoin Do podcast called this an “invasion on privacy”. However, this sentiment seems to be echoed by the CCI letter.

What can we do? The Sutherland report says that in a nutshell:

“The laws that are crimes against digital asset users must be discussed publicly and should not be included in the expense bill default.”

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