What are the concerns raised by the cryptocurrency community regarding the infrastructure bill?

6 answers

• Nov 28, 2021 · 3 years ago
  One of the main concerns raised by the cryptocurrency community regarding the infrastructure bill is the potential impact on innovation and technological development. Many fear that the bill's proposed regulations and reporting requirements could stifle the growth of the cryptocurrency industry and hinder the development of new technologies. They argue that the bill's broad definitions and lack of clarity could lead to unintended consequences and burdensome compliance costs for businesses and individuals.
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• Nov 28, 2021 · 3 years ago
  Another concern is the potential for increased government surveillance and intrusion into individuals' financial privacy. The bill includes provisions that would require cryptocurrency brokers and service providers to collect and report customer information to the IRS. This has raised concerns about the privacy and security of personal financial data, as well as the potential for government overreach and abuse of power.
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• Nov 28, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, has expressed concerns about the infrastructure bill's impact on the competitiveness of the cryptocurrency industry. They argue that the bill's proposed regulations could put US-based exchanges at a disadvantage compared to their international counterparts, potentially driving innovation and investment overseas. They also highlight the importance of striking a balance between regulation and fostering innovation to ensure the long-term success of the cryptocurrency industry.
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• Nov 28, 2021 · 3 years ago
  Some members of the cryptocurrency community are also concerned about the potential negative effects on decentralized finance (DeFi) platforms. The bill's broad definitions of brokers and reporting requirements could inadvertently classify DeFi platforms as intermediaries, subjecting them to regulatory burdens that could stifle innovation and limit access to decentralized financial services.
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• Nov 28, 2021 · 3 years ago
  Additionally, there are concerns about the lack of industry input and consultation in the drafting of the bill. Many in the cryptocurrency community feel that the bill's provisions were rushed and did not take into account the unique characteristics and needs of the industry. They argue that a more collaborative and inclusive approach is needed to ensure effective and balanced regulation.
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• Nov 28, 2021 · 3 years ago
  Overall, the concerns raised by the cryptocurrency community regarding the infrastructure bill revolve around the potential impact on innovation, privacy, competitiveness, and the decentralized nature of the industry. It is important for policymakers to carefully consider these concerns and work towards a regulatory framework that supports the growth and development of the cryptocurrency industry while addressing legitimate concerns around security and consumer protection.
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