The week dubbed 'crypto week' ended without votes on key bills in the U.S. Congress due to internal conflicts among Republicans.
Internal Republican Conflicts
This week, Republicans faced serious disputes that thwarted the ability to vote on three cryptocurrency bills. Initially, voting was scheduled for Wednesday, but internal disagreements diminished the chances of success. Conservative party members blocked their own leaders' attempts to bring the bills to the floor.
Bill Merging and Its Consequences
In an attempt to reach a compromise, a merger was proposed between the CLARITY Act, which focuses on market structure, and a bill banning the launch of a central bank digital currency (CBDC). However, this merger triggered protests as committee members, who drafted the bills, warned it would undermine both initiatives. Discussions about further steps are ongoing.
New Crypto Tax Initiatives
Meanwhile, Rep. Max Miller introduced new proposals for the taxation of cryptocurrencies. He stated that the current tax system needs reform to accurately account for cryptocurrency operations. The bill proposes a de minimis exemption for small crypto transactions and aims to clarify the taxation rules for mining and staking. Miller argues these changes are necessary to integrate digital assets into the financial system without imposing penalties on users.
Thus, considering the ongoing disputes within the Republican party and the emergence of new tax initiatives, the future of crypto legislative proposals remains uncertain.
