On Tuesday, there will be an introduction of a new US crypto bill, which might be a breakthrough point in the history of Altcoins. The law is written by Kirsten Gillibrand, a Democrat, and Cynthia Lummis, a Republican.
Lummis’ participation at the root of the bill, as a Bitcoin bull, might substantially boost the Bitcoin ecosystem. However, the future of altcoins is not bright.
A YouTuber named Chico Crypto predicted that the proposal of the much-awaited crypto law will be “quite fascinating.” According to him, the measure expands the terms of crypto tokens and the SEC’s regulatory authority.
This might indicate that a wide spectrum of cryptocurrencies will be subject to the SEC’s review. He also noted that if altcoins will be securities, it would be a negative indication for the market.
Bill To Enhance SEC Regulations On Altcoins
He explained the SEC’s control over cryptocurrencies by saying, “Tokens that gain from others’ organizational actions or give financial interest in the token’s issuance effort fall into this category. This concept may not include decentralized autonomous organizations (DAOs). Many people who show interest in the firm, on the other hand, may obtain a batch of tokens.”
The majority of cryptocurrencies issue tokens as a form of income. As a result, this might be challenging since it broadens the SEC’s authority. “There might be loopholes in the law that allow the SEC to destroy a lot of cryptocurrencies,” the YouTuber speculated.
Crypto Bill To Favor DAOs ?
Senator Lummis is from Wyoming, which is interesting. It was among the first states to provide a foundation for DAOs to operate as limited liability companies (LLCs). As a result, with huge tax revenue, Wyoming might see a significant increase in this area.
On the positive side, a portion of interest from crypto trading may be excluded from taxation. The new measure may exclude up to $100 in crypto earnings from capital gains tax if it is spent on products or services. However, according to reports, the maximum exemption may be $600.
Crypto As Securities?
On the other hand, one of the Reddit threads shared by the CryptoCurrency community asserts not to fall for FUD. According to the community, though a few reports say most cryptos will be seen as securities, the reality might be the opposite.
Was this writing helpful?
Source: https://coinpedia.org/news/the-us-crypto-bill-to-be-released-today-know-how-what-impact-will-altcoins-have/