Crypto takes on Capitol Hill; Recent price action characterized by supply crunch and low exchange volume; Macro picture is uncertain but presents opportunity; Ethereum upside from EIP-1559

Aug 4, 2021 • 7 Min Read

Crypto takes on Capitol Hill

Last week, news outlets began reporting on a curious provision tucked away in the 2,700-page, $1 trillion bipartisan infrastructure bill compiled by the Senate. The bill, which is now subject to the Senate amendment process, featured a last-minute, crypto-specific addition that detailed $28 billion of incremental tax revenue resulting from enhanced crypto tax reporting rules.

The focal point of the controversial provision was its definition of "broker." It defined a broker as any person who provides a service “effectuating transfers of digital assets on behalf of another person.” This definition was viewed by those in crypto as too broad and would likely leave intermediaries such as miners and software developers vulnerable to impractical reporting requirements.

The chart in this report is only accessible to members

Source: CoinDesk

We wanted to address this issue since it has garnered plenty of mainstream press and, consequently, many of our clients have inquired about it. While we understand why this news seems disconcerting, rest assured we have our ears pressed firmly against the ground on this issue, and based on industry sentiments, it is not clear that Congress was prepared for the backlash it is facing. Through the tireless work of crypto lobby groups such as Coin Center and t...

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