While the US Congress is deciding the fate of the cryptocurrency industry with the Infrastructure Bill, Bitcoin is not collapsing, in fact, it seems more vibrant than ever.
Indeed, it is strange that just as history is being written in one of the world’s most important countries, the market is neither hesitant nor bearish. On the contrary, Bitcoin and Ethereum have never been so spirited.
Mike Novogratz explained the reasons in a tweet and there are essentially two reasons:
“1) DC realized the crypto community is big, diverse and loud. And 2) They proved exactly why people want decentralized systems in the first place”.
Indeed, at the time of writing this article, just hours before the decisive vote on the Infrastructure Bill, the price of Bitcoin has again touched $45,000, reversing the negative course of early morning. Bitcoin is currently up over 2%. Ethereum too, driven by the London upgrade, has again broken the $3,000 mark.
In short, it seems that the crypto scene at the moment is not concerned about what is happening in the United States.
After all, what Mike Novogratz says is true: the community is large, diverse and strong, and above all, it is global. Operations that might not be allowed in the US could be carried out elsewhere by US citizens themselves,
Moreover, these very laws end up diverting users’ attention to cryptocurrencies.
As Novogratz himself explained in an earlier tweet:
“Crypto started as a movement of people who didn’t trust government and centralized authority. The embarrassing actions of our Senators and the White House reinforces this lack of trust. Shameful”.
The Infrastructure Bill and Bitcoin’s reaction
In fact, the Infrastructure Bill was created to increase the tax levy and up to this point, there would be nothing wrong with it. However, it would force transaction validators to report to the IRS. Exchanges such as Coinbase have said they are willing to do this, but others don’t have the infrastructure to do so due to the decentralized nature of their operations.
If the bill passes, as it is structured, the crypto industry in the US would be dealt a severe blow that would take them out of a leadership position.
The debate is currently revolving around a number of amendments that could change the impact of the bill, starting with the one tabled by Cynthia Lummis.
However, the situation is constantly evolving. At the moment, the market does not seem worried. It remains to be seen what will happen after the final vote, expected on Tuesday.