A crypto law will be drafted on Tuesday, at a time that could mark a turning point in the history of Bitcoin and altcoins in the US. US Democrat Senator Kirsten Gillibrand and Republican Senator Cynthia Lummis penned the bill. Here are the details…
Recent developments about the crypto money bill in the USA
As we have also reported as Kriptokoin.com, the presence of Lummis, a Bitcoin bull, at the center of the bill is expected to greatly support the Bitcoin ecosystem. However, all is not looking well for the future of altcoins. Chico Crypto, a YouTuber, said that the highly anticipated cryptocurrency sketch would be “very interesting”. The bill expands the definitions of cryptocurrencies and the regulatory scope of the U.S. Securities and Exchange Commission (SEC). According to experts, this could mean that a wide range of altcoins could essentially fall under the SEC’s scanner. The senators also added that if they could be considered securities, it would be a bad sign for the altcoin market. Announcing the cryptocurrencies covered by the SEC, he said:
This bracket includes tokens that profit from the administrative efforts of others or gain financial interest in the token issuance effort. Decentralized autonomous entities (DAOs) may not fall within this definition. However, many people who are interested in a company buy certain tokens.
Most of the altcoins provide interest in the form of tokens. This is therefore thought to be a nuisance as the SEC expands its reach. “There could be loopholes in the bill, potentially giving the SEC the power to kill many altcoins,” the YouTuber said. For example, today, the SEC launched an investigation into the BNB tokens of Binance, the world’s largest cryptocurrency exchange by trading volume. According to the investigation, authorities are investigating whether Binance sold BNBs as securities in 2017. Binance CEO Changpeng Zhao did not comment on the matter, but according to the official statement of the exchange, they will do their best to help regulators.
Which altcoin projects might be affected?
Interestingly, Senator Lummis represents Wyoming. As we’ve reported on cryptokoin.com, Wyoming was one of the first states to create a framework for DAOs to register as LLCs. Therefore, with a large pool of taxable money coming into the state, it is thought that Wyoming could witness a huge increase in this area.
On the other hand, there may be tax exemption for a certain profit earned through crypto trading. The bill will exempt up to $100 in capital gains tax on crypto profits if spent on goods or services. However, a leaked report of the first draft of the bill suggested setting the exemption limit at $600.
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