US Senate Eyes Bid For Cryptocurrency Grab
As the sentiment towards cryptocurrency changes at a staggering pace, those who wish to cash in without doing the work grows also. The US Senate has moved to release a new bill that allows them to criminalize non-disclosure of digital assets and allows them to extend their reach further into a virtual world in which they have no real place. You can already see, I'm not pleased at the long arm of the government getting in the way here.
So how will the government dedicate resources and manpower to uphold such a law? That is yet to be determined, but rest assured they will print more dollars to pay the minions who do their bidding. Many cryptocurrency investor who are in it for the long haul have little to worry about at this point but as time goes by this could change.
As of now crypto investors have only the hurdle of a capital gains tax to overcome when cashing out. The tax is staggering and in my opinion is a huge catalyst for more investors in the space to simply keep their assets as cryptocurrency and not make the exchange to Fiat. Less sellers as more buyers flood in.
What will this do to prices? I believe the end result is pretty obvious. Bitcoin, at the moment, is nearly on a parabolic up swing and even though we are seeing consolidation at the $10-11k level, this may be the calm before the storm. Another factor is the time of year we are in. Many will cash out for the holidays and we could already be seeing that as the season is nearly coming to a close. The sell off that we have seen has been rapidly bought up and those who are invested long term are buying more with each dip.
As regulators move to act I believe there will be backlash that could go both ways. Bitcoin could be hurt if the regulation becomes overly intrusive and Bitcoin could become more stable if the regulation is reasonable and on board with the philosophy of this digital currency craze.
It will be interesting to see how this all plays out over the next months and interesting to see how the US Government has a hand in it. One thing to note is that cryptocurrency knows no borders and the people who are using it are beginning to believe less and less in restrictive borders as well. That said, the US government is steadily losing control over the citizen's financial state and in creating improper regulatory measures, will only speed this process up.