Here’s Why the US Infrastructure Bill Continues to Worry the Crypto Industry

The infrastructure bill is edging closer to passing by the U.S Senate despite the delays. The delays are coming from lawmakers opposing the bill’s amendment about crypto, saying that there has not been enough discussion. 

Inflicting the Crypto Industry

The infrastructure bill is one of the most significant investments of its kind, and with its popularity, senators are eager to deliver.

The package aims at unleashing billions of dollars to upgrade roads, water pipes, internet, and other public utilities for the nations, making it among the top of President Joe Biden’s priorities.

Despite the many developments that the bill might bring to the cryptocurrency space, it could be a disaster. The proposed amendment exempts traditional miners from participating in proof of work systems. However, those using proof of stake will report to the IRS to raise at least $28 billion in taxes from crypto. 

Crypto Enthusiasts Remain Wary

According to Ted Cruz on Twitter, when the Senate passes it, it will inflict billions of dollars of damage on the crypto industry, which is currently growing at a good pace and is exciting. He also added that it would drive much of the crypto industry overseas. 

https://twitter.com/tedcruz/status/1424558384335015939?s=19

Cruz continued to say that the larger senate population does not understand much about cryptocurrency and has not read in detail about what the bill means for the crypto space. Saying that it is a reckless and harmful move, Cruz believes that there should be more reviews on the part of the bill that pertains to crypto.

On the other hand, those in favor of the amendment cannot see any extraordinary burden on the crypto industry. Senator Elizabeth Warren said that the bill is not a direct tax but simply a reporting requirement.

The Legislation Progress for the Bill

On Saturday, the legislation took a huge step forward when voted in by 97 lawmakers, including 18 republicans. These votes surpassed the 60-vote threshold needed for most legislation in the 100- seat senate. 

However, all 100 have to provide consent to expedite the process; they must wait until Monday or Tuesday. According to the parliamentary rules, this is required so that the bill can move in stages for discussion. 

Once the Senate has passed the bill, it will go to the House of Representatives that Democrats control by a narrow margin. Nancy Pelosi, the House Speaker, has repeatedly said that she will only bring the bill to vote once the Senate has passed a separate $3.5 trillion bill. The other bill focuses on funding that will allow fighting climate change and addressing home health care which Democrats want to push through without the Republican vote using “reconciliation.”