November 17, 2021

U.S. senator opposes cryptocurrency tightening in new investment law

U.S. senator opposes cryptocurrency tightening in new investment law

U.S. Senator from Texas Ted Cruz prepared a bill that aims to repeal the part of the law on investments in the country's infrastructure related to the requirements for the activities of cryptocurrency brokers. The senator shared the bill in his Twitter.

The Investment Act was actively promoted by U.S. President Joe Biden and was signed by him the day before. The initiative calls for about $1.2 trillion in investments in the infrastructure of the States. Cruz called the new law a "reckless spending package."

The law also imposes strict requirements on brokers and organizations that deal in cryptocurrencies. They could be required to provide the Internal Revenue Service (IRS) with data on their clients. Such requirements of the document are not always technically feasible.

According to Senator Cruz, the new law not only threatens the privacy and funds of members of the crypto industry in the U.S., but also hinders the development of technology in the country and could lead to the migration of many cryptocurrency companies abroad.

It is worth noting that many Chinese miners moved to Texas after the ban on cryptocurrencies in the PRC.

The U.S. Infrastructure Investment Act will take effect in 2024.

Jack Evans

About the author

I became a crypto asset owner in 2014, when the industry was in its infancy. Before that, I was working in the classic US and European stock markets. Since then, I have gained extensive experience in both cryptocurrency investing and day trading. I am happy to share with readers my experience with crypto exchanges, DeFi and NFT instruments. 

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