On Tuesday, a new US crypto bill will be introduced, which could be a breakthrough point in the history of altcoins. The law is written by Kirsten Gillibrand, a Democrat, and Cynthia Loomis, a Republican.
The involvement of Loomis at the core of the bill, as a bitcoin bull, could significantly boost the bitcoin ecosystem. However, the future of altcoins is not bright.
A YouTuber named Chico Crypto predicted that the much-anticipated crypto law proposal would be “quite lucrative”. According to him, the measure extends the terms of the regulatory authority of crypto tokens and the SEC.
This could indicate that a broader spectrum of cryptocurrencies will be subject to SEC review. He also added that if altcoins would be securities, it would be a negative sign for the market.
Bill to Enhance SEC Regulations on Altcoins
He explained the SEC’s control over cryptocurrencies, saying, “Tokens that are derived from the organizational actions of others or give a financial interest in the token issuance effort fall into this category. The concept includes Decentralized Autonomous Organizations (DAOs). On the other hand, many people who show interest in the firm can receive a batch of tokens.”
Most cryptocurrencies issue tokens as income. As a result, it can be challenging because it broadens the authority of the SEC. The YouTuber speculates, “There may be loopholes in the law that allow the SEC to liquidate a lot of cryptocurrencies.”
Crypto bill in favor of the DAO?
Senator Lumis is from Wyoming, which is interesting. It was one of the first states to provide a basis for DAOs to operate as limited liability companies (LLCs). As a result, with huge tax revenues, Wyoming could see significant growth in the sector.
On the positive side, a portion of the interest from crypto trading can be kept out of taxation. The new measure can exclude up to $100 in crypto income from capital gains tax if it is spent on products or services. However, according to reports, the maximum discount could be $600.
Crypto as Securities?
On the other hand, one of the Reddit threads shared by the crypto community claims not to fall for FUD. According to the community, although some reports state that most cryptos will be viewed as securities, the reality may be quite the opposite.