The digital asset landscape in the United States is about to change dramatically with the introduction of a new bill to block certain crypto-currency transactions. This bill, recently approved by Congress, could have a significant impact on the crypto-currency industry and users of these assets.
A stronger legal framework
Protection of miners and blockchain infrastructures
The new bill, signed by Oklahoma Governor Kevin Stitt on May 13, 2024, establishes a legal framework for blockchain technology and protects crypto-currency mining activities. In particular, it prohibits the Oklahoma government from imposing restrictions on the use of digital assets for legal purchases or personal custody.
Transaction and licensing regulations
In Virginia, new legislation introduced by Senator Saddam Azlan Salim aims to protect the rights of digital asset miners and provide tax incentives for purchasing goods and services with crypto-currencies. The bill exempts individuals and companies engaged in mining activities from the requirement to obtain money transmitter licenses and offers tax benefits for the use of crypto-currencies in everyday transactions.
Impact on users and businesses
One of the most controversial aspects of the new law is the reporting requirement for any transaction over $10,000 in digital assets. Individuals will have to verify the recipient's personal information and submit a report to the government within 15 days. This requirement could be seen as a major threat to digital assets, given the challenges posed by verifying such information in the context of crypto-currency transactions
Implications for the crypto-currency industry
Compliance and regulatory risks
Experts believe the legislation could discourage innovation and drive crypto-currency companies out of the US to more favorable jurisdictions, such as Switzerland or Singapore. William McCormick, founder of blockchain consultancy Pure Knot, said the Senate realizes that crypto-currencies are a truly global currency that they cannot easily regulate.
Opportunities and challenges
Despite the challenges, some see this legislation as an opportunity to strengthen the understanding and regulation of crypto-currencies. By establishing clear rules for tax obligations and crypto-currency transactions, the government could encourage new market participants and increase confidence in this emerging technology.
Conclusion
The new US Digital Assets Bill represents an ambitious attempt to regulate a rapidly expanding sector. While it aims to protect users and prevent illicit activity, it also raises concerns about its impact on US innovation and competitiveness in crypto-currencies. Time will tell whether this legislation succeeds in balancing security and technological development.
