The U.S. Senate added to the $1.2 trillion bipartisan infrastructure bill a provision that aims to raise between $28 and $30 billion via taxation on crypto assets. The draft's provision spurred crypto organizations on Friday to ask Congress to reconsider legislative language that poses an "imminent threat" to the industry.
The Senate bill recently added new rules for crypto trading firms and brokers, requiring them to report additional information about some transactions, including those valued at over $10,000, and the Biden administration confirmed the intent to raise revenue.
According to Bloomberg, the updated regulations could bring in about $28 billion in new tax revenue during the first decade. The Blockchain Association implored lawmakers: "What Congress is considering with this measure is not a new tax on the cryptocurrency industry. Instead, it puts new reporting requirements on individual players in the industry who have no way to comply." It is unclear if the broad provision will be removed from the bill's final version.
Here is the rest of the week in review:
Goldman Sachs
Fireblocks announced Tuesday it has raised $310 million in a Series D funding round that boosts its new valuation to $2 billion. Renowned venture capital firms led the latest round, including Sequoia Capital, Stripes, Spark Capital, Coatue, and DRW, with participation from SCB 10X, the venture arm of Thai bank Siam Commercial Bank. The new funds bring the crypto custody startup's total raised to $489 million. CEO Michael Shaulov explained the firm plans to remain independent: "It was very important for us to show the customers that we have the balance sheet and valuation to stay independent." Fireblocks said its solid new valuation signals it is not an acquisition target. The firm provides cryptographic key technology services. Fireblocks partnered with BNY Mellon
Crypto prices climbed to $1.66 trillion this week amid broad recovery. For the majors, all ended the week green, with most posting double-digit surges. In the top 100, the biggest losers were Theta Fuel (TFUEL), down 9%, Algorand (ALGO), down 4.6%, and Mdex (MDX), down 4.4%. The biggest gainers were THORChain (RUNE), up 85%, Quant (QNT), up 81%, and Ankr (ANKR), up 51%. Next week traders will watch if Bitcoin (BTC) stays above the key $40,000 level.
The author owns a small amount of BTC.