The U.S. Infrastructure Bill is set to have far-reaching implications on how Virtual Asset Service Providers (VASPs) are defined - and how the broader crypto industry is regulated. Here’s a quick update on one of the impending significant developments in Travel Rule news:
In the U.S, a $1T Infrastructure Bill was introduced to improve infrastructure facilities in various components of the U.S economy. The part of the bill that attracted the crypto community's attention was the proposal to raise $28 billion by including a broad definition of crypto brokers. This could potentially rope in DeFi players, miners, decentralized exchanges, and others requiring them to adhere to strict reporting requirements.
Changes were proposed to the bill but shot down, which means it is now likely to be passed in its original form. An interpretation of the bill is that many dApp developers may need an identity solution/module on their platform to comply with the reporting requirements. Any such solution would need to preserve privacy while ensuring compliance.
In the long run, regulation is probably required for mainstream recognition. But, moreover, the fact that one of the largest and most influential countries in the world is now starting to acknowledge crypto - and is trying to accommodate it in its legal structure - may be a clear indication that the blockchain industry is here to stay.