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Bitcoin (BTC) and other mainstream cryptocurrencies in the market took a sharp plunge on Tuesday as they may well seem to have veered away from their record highs. This is after United States President Joe Biden has penned the one trillion-dollar infrastructure bill as this contains what is called a cryptocurrency tax reporting requisite.
Now that the bill is a done deal, the cryptocurrency community now has woes as to how this infra bill deems the term “broker” as crypto folks believe it’s an open-ended term that might include node operators, miners, and others in the mix.
Bitcoin, Ethereum dips
On Tuesday, bitcoin dipped by 5.8% as its market price settled at $61,866.74. Ethereum (ETH) endured the same fate as it took a 6.9% nosedive making its market price sit at $4,375.76. Additionally, both of these digital currencies took over 8% in terms of their seven-day losses.
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Polkadot’s huge loss
In line with this, it is said that the token that took the biggest L that day was the altcoin Polkadot (DOT) that went down by 9.5%, which translates to a market price of $42.47.
Further, it was noted that Polkadot has already taken a 19% fall in the past week and is said to be just 21% away from the altcoin’s all-time high of $54.98 that was reached less than a couple of weeks ago.
On the other hand, Cardano (ADA) and Solana (SOL) also took a plunge of 4.5% as their prices went down to $1.95 and $230.43 respectively.
As for the Japanese canine-themed meme tokens of Dogecoin (DOGE) and Shiba Inu (SHIB), the former went down by 4.8% to just $0.2499 while the latter dipped by 2.9% to just $0.0000509.
Infrastructure Bill and crypto
Now back to the recently signed infrastructure bill that President Biden signed, aside from the term “broker” being its definition deemed too broad, there’s another provision within the bill that is opposed by the cryptocurrency community. The above-mentioned tax reporting requirement has irked crypto folks as this obliges recipients of transactions that are above the $10,000 threshold to verify the sender’s details, not to mention record the sender’s Social Security number alongside other information as this has to be submitted to the government within 15 days.
Meanwhile, Senator Cynthia Lummis (R-Wyo.) and other lawmakers are trying to narrow the coverage of the infrastructure bill’s cryptocurrency broker clause via a separate bill introduced on Monday.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
