Cryptocurrency Market Records Massive Rally as Senators Reach Agreement on Crypto Regulation

Azeez Mustapha
9 August 2021 | Updated: 9 August 2021

The cryptocurrency market currently enjoys a rush of bullish momentum as members of the US Senate scramble to reach an agreement ahead of the legislation of a new crypto regulatory bill tomorrow.

At press time, Bitcoin trades around $45,850, a 4.6% intraday jump, while Ethereum trades at $3,150 or +4.5%. As expected, the bullish momentum in the two largest cryptocurrency sparked a bullish sentiment across the industry.

Cryptocurrency traders are purchasing cryptocurrencies and cryptocurrency-related stocks ahead of a vote in the Senate that should elucidate documentation (reporting) requirements on brokerages and exchanges. The US Congress plans to raise $28 billion from taxing the crypto industry to support the $550 billion infrastructure spending.

According to reports, the lawmakers appear to have reached a compromise amendment for the reporting requirements.

Senators Cynthia Lummis (R., Wyo.) and Pat Toomey (R., Pa.) announced the deal with Democratic colleagues, revealing a bipartisan coalition between key Senate negotiators.

Original Cryptocurrency Regulatory Bill Unfavorable for Industry

The language defined a broker as “any person who…regularly effectuates transfers of digital assets on behalf of another person.” However, it clarified that it specifically excluded miners, including those who validate distributed ledger transactions and hardware or software developers who provide wallet keys.

Notably, this compromise received widespread accordance from the crypto community, as advocates lobbied relentlessly against the original bill. The initial language failed to provide exemptions for miners and developers, which could have triggered an exodus of the industry to offshore locations.

Crypto advocates urged Congress not to play favorites with deciding mining groups exempt from the reporting requirement. Some competing amendments would have excluded proof-of-work and proof-of-stake mining from the broker basket but also opened channels for reporting based on protocols. This amendment would require miners to issue 1099 forms to crypto traders, an impossible feat considering that miners do not know their customers due to the decentralized nature of the industry.

 

You can purchase crypto coins here: Buy Tokens

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
Share with other traders!
Azeez Mustapha

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.