The crypto community has come together to protest against the latest amendments proposed for the cryptocurrency regulation bill. According to experts, new changes in the infrastructure plan can impose stringent limitations on the developers and validators, all the while they are making exemptions in the market.
The new changes in the White House development plan to allocate $28 billion for infrastructure development in the country. This fund will be collected by imposing a new tax on all cryptocurrency transactions in the United States. Furthermore, the bill also aims to change the legal definition of the term broker that will exempt many investors from getting their approval and practice license.
The latest austere amendments are introduced as a last-minute edit by Senator Rob Portman and Mark Warner. Only crypto entities that have gained immunity from these changes are miners, OTC trading, hardware sellers, and digital wallet providers. On the other hand, new taxation and reporting will be applicable for proof-of-Stake validating blockchains and crypto-related developers.
Jeff Stein is a journalist from Washington Post who confirmed that the White House is showing support for the recent changes in the bill. He claims that there was a counter bill proposed by Senators Ron Wyden, Pat Toomey, and Cynthia Lummis. The Toomey-Wyden-Lummis plan presented the cryptocurrency businesses with a lot more exemptions by excluding all distributed ledger transactions that are validated.
New Proposed Bill will also Target Proof-of-Stake Blockchains
Up until a few days ago, many investors were prone to believe that proof of stake blockchains are the future of the crypto world. Many regulators from the government raised grave concerns about the environmental shortcomings of blockchains like Bitcoin. However, with the new amendment, the game has been flipped upside down. Jerry Brito, Executive Director of Coin Center, pointed out this while condemning the Warren-Portman plan.
The executive director claimed in a recent tweet that the impact of these new changes on the cryptocurrency market will be disastrous. He further added that Congress is trying to pick out the winners and losers in the crypto world by drawing such visible distinctions. Many experts are claiming that the ax of the amendment will fall on the shoulders of proof-of-work networks and software developers with the greatest impact.