As the Senate debates a $1 trillion infrastructure bill, bitcoin and other cryptocurrencies are surging. Bitcoin surpassed over $46,000 on Monday morning while ether jumped to around 3 thousand dollars for just one day before settling down at 2:00 p.m EST today with an average of about 3k per coin- but that’s not all folks! Here are five things happening in crypto this past week.
1. NFT Market Still on Bloom
A new token type called NFTs, or non fungible tokens have surged in popularity over the past week. OpenSea is one of the largest marketplaces for buying and selling these types of assets and they surpassed $428 million dollars worth traded volume within a seven day period that includes some popular collectibles such as CryptoPunk at just under $134 million USD value traded volume, while Axie Infinity came out on top with close to 230 Million Dollars trade-volume.
2. More Investor Protection Require in Industry
SEC Chair Gensler made headlines last week as he shared his stance on crypto regulation. “While I’m neutral about the technology, I’m even intrigued,” Gary said in an interview with Bloomberg News. “I’m not neutral about investor protection.” If someone wants to speculate with their money that’s up to them but we have a duty as a nation to protect those investors against fraud and scams when it comes down the line says SEC chair Gensler who also alluded plans for regulating exchanges such as Coinbase during his speech at Aspen Security Forum saying “we need more transparency” And while some of what was discussed may seem like mere speculation now there is always room for change especially considering this new wave of innovation seems capable enough without regulations.
3. Major London Upgrade of Ethereum Going Live
Ethereum’s blockchain, which runs ether, was recently upgraded on Thursday. The upgrade includes Ethereum Improvement Proposal (EIP) 1559 that aims to change the way transaction fees are estimated. Currently when users want their transactions picked up by a miner they must bid for how much they’re willing to pay and this can be extremely costly as bidders have no idea what fee is needed in order for them to end up with one of the few available slots offered each block mined–until now! Under EIP-1559, bidding will instead take place through an automated system where miners set an agreed upon amount based on congestion levels within the network at any given time making it fairer and more affordable than before.
EIP-1559 sounds like a good idea on paper. It’s not going to lower gas fee prices or the cost of transactions (which can be very high), but it could improve Ethereum’s user experience, reduce supply and potentially boost its price in time.
4. CEO Binance.us is Resigning
After three months as CEO of Binance.US, Brian Brooks resigned from his position at the crypto exchange’s US affiliate on Friday amid differences over “strategic direction.”
“Greetings #crypto community,” tweeted Brooks in a tweet announcing that he would no longer be leading Coinbase’s U.S arm and former top banking regulator for President Obama before taking up this role only three months ago. His resignation comes just weeks after revelations about regulatory scrutiny within America – but it is unclear whether such events are linked to his decision to step down - particularly considering recent troubles with compliance setbacks and international regulations around the globe which have placed new strains on cryptocurrency exchanges worldwide, including those under Mr Brook’s watchful eye here in America now too.
5. Senate’s Crypto Infrastructure Bill Upgrade
The Senate released its proposed infrastructure bill that includes a provision about how “digital assets” are taxed. The new law would require brokers to report gains in a type of 1099 form, and transactions worth more than $10k will be reported to the IRS as well. However crypto advocates pushed for lawmakers to clarify what they consider an acceptable definition of ‘broker’. On August 1st 2021, the United States Senate revealed their plans on taxing digital assets with stricter rules imposed by adding provisions into legislation dealing with U.S infrastructure funding bills which included one requirement mandating all brokers track any profits made from cryptocurrency trades over $1K USD because previously it was only tracked when someone traded over $10000USD at once or if there were suspicions tax evasion.
Recently, there has been an upsurge in the number of people who have rallied against a bill that would regulate digital assets. The current definition is too broad and targets miners to developers, stakers, and others who do not provide services for their customers. A primary concern with this legislation is how it will affect those without access to the information needed to comply with government regulations such as brokers or exchangers.