Bitcoin advances through the processing of a bill on cryptocurrencies in the US

Photo: REUTERS/Ruvic data/Illustration

The recent increase in bitcoin, which reached US$ 46,000 on Monday (9) at its highest level since May, comes before the Senate vote on the infrastructure project, scheduled for tomorrow. The measure includes an amendment to tax reporting requirements for cryptocurrency brokers and exchanges. Congress plans to raise $28 billion in revenue from cryptoactive transactions to help pay the $550 billion in new infrastructure spending.

Cryptocurrency advocates have lobbied strongly against the project language, which does not exclude miners or software developers from the definition of brokers. That could lead to an exodus of the industry to offshore locations, they argue. The amendment is expected to be revised, and the market sees increasing signs that the industry is gaining more allies on Capitol Hill.

The industry may also have better luck with the US Securities and Exchange Commission (SEC). The agency recently approved Bitcoin Strategy ProFund (BTCFX), the first mutual fund that invests in bitcoin futures, and President Gary Gensler signaled openness to futures-based ETFs in a speech last week. Fund companies are moving fast. ProShares and Invesco have already presented plans with the SEC to launch ETFs based on bitcoin futures.