28.11.2021

Regulation of cryptoassets in the US will be the new driver of growth for BTC and ETH

Bloomberg Intelligence Chief Commodities Strategist Mike McGlone expressed the opinion that any possible US regulation of cryptocurrency would favor Bitcoin and Ethereum.

McGlone tweeted that Bitcoin’s current rally could gain additional momentum if US regulators target cryptocurrencies. However, the expert believes that the cryptocurrency industry expects regulators to make the right choice.

“What worries us? The crypto market expects the US to do the right thing. Any moves by the US to regulate cryptoassets are likely to support the updated upward trajectories of Bitcoin and Ethereum, “ McGlone wrote.

Bitcoin has gained momentum in recent days, trading at $ 45,800 on August 11, showing a weekly gain of 20%. After hitting a record high of $ 64,800 in May, the bitcoin price has corrected, losing almost 50%.

The fall was partly due to reprisals from regulators in various jurisdictions and mainly in China.

“The growing dichotomy between China, which is moving backwards, and the United States, imposing clear rules, may mean part of a different new type of cold war. Countries that restrict capital flows may lag behind the digitalization of money and finance , ”added McGlone.

At the moment, the expert adheres to the most optimistic views on bitcoin, noting that he does not predict anything that could restrain the growth of the asset’s value.

According to the strategist, the recent price correction was short-term and created the basis for establishing long-term profit. McGlone suggests that Bitcoin will trade at $ 100,000 in the coming years.

U.S. Senate sends unamended bill to House of Representatives

On Tuesday, August 10, the US Senate sent a bipartisan bill to raise $ 1 trillion to upgrade the country’s infrastructure to the House of Representatives in its original form.

The document contains an expanded definition of the concept of “broker”. For example, miners and node operators in blockchains, wallet developers, liquidity providers in DeFi protocols and other non-custodian players may be required to report to the Tax Service on the activities of their users.

The requirements of the bill in this form are technically impracticable, for which the document has been repeatedly criticized by representatives of the cryptoindustry, including Elon Musk and Jack Dorsey.

Senators Ron Wyden, Cynthia Lummis and Pat Toomey proposed to exclude these activities from the document and not apply the rules applicable to brokers to them.

Their colleague Rob Portman agreed with them, but put forward a counter amendment, excluding only miners and sellers of hardware or software that allows individuals to control private keys. In the case of his proposal, the status of PoS validators remained unclear.

We will remind, on August 9, Democrats, Republicans and the Treasury Department reached a compromise, but the corresponding amendment did not receive unanimous support – 87-year-old Richard Shelby opposed.

According to journalist Jake Sherman, Republican Shelby admitted he supported the amendment but blocked it because others did not consider his defense spending proposal.

Now, crypto industry lobbyists, having failed in the Senate, are aiming to introduce a new amendment in the lower house of the US Congress.

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