FX.co ★ Crypto industry faces huge problem amid new US infrastructure bill

Newly appointed SEC chief Gary Gensler has begun to detail his priorities for regulating cryptocurrency.

In an interview, Gensler said the SEC should better control crypto exchanges in order to protect investors from fraud. The main issues that they need to address are: initial coin offerings, marketplaces, lending platforms, decentralized financing, stable value coins, storage, ETFs and other coin funds.

Gensler has spoken several times about cryptocurrency regulation, but has yet to address some of the industry's biggest concerns, such as the SEC approval on Bitcoin-traded funds.

Gensler's stance may be clearer after his speech at the security forum in Aspen.

But in the short term, the industry is facing a bigger challenge as the Congress is currently looking for ways to pay the infrastructure bill that will bolster the country's bridges, tunnels and rail system. Closing the loopholes that allow crypto holders to avoid taxes is one way to raise money. Authorities have been complaining that lax reporting standards make it easier to evade taxes on cryptocurrency transactions.

A provision in the Senate bill aims to collect $ 28 billion in taxes by forcing more companies in the industry to collect tax information. IRS officials said that getting additional tax information would help them track cryptocurrency profits, but the crypto community is concerned about this account. The regulation originally included language defining a cryptocurrency "broker", which industry lobbyists warned could include groups such as cryptocurrency miners who are reluctant to collect financial information.

The lobbyists changed some of the wordings, but some industry supporters believe the change has not gone far enough and could still trap software companies that make products like crypto wallets that allow people to store their assets.

Senator Pat Toomey said he plans to amend the law to make it clearer. Meanwhile, Coin Center executive director Jerry Brito tweeted that there is still a lot to be done: "Yes, there have been concessions, but the latter language can still be interpreted by the Treasury to cover miners, Lightning nodes, etc. If it's not the intention of Congress, they can make simple decisions. There is still time for that. "