Hello and welcome to the newest issue of Overbit Insights. In our first story of the week, we look at the growing trend of celebrities and politicians demanding payment in "digital gold," aka Bitcoin.
This week, New York City Mayor-elect Eric Adams, the former police captain, was elected to succeed Mayor Bill de Blasio, whose term expires in January. In an unexpected move, he has stated that he would like his first three paychecks to be in Bitcoin.
Mr Adams stated on social media that he wanted to signal his intention to make New York the "centre of the cryptocurrency industry". Mr Adam's remarks appear to be an attempt to outdo Miami Mayor Francis Suarez, who had previously stated on Twitter that if re-elected, he would accept his first paycheck in Bitcoin. Mr Suarez has already expressed a desire to make Miami a cryptocurrency innovation hub.
"In New York we always go big, so I'm going to take my first three pay checks in Bitcoin when I become mayor," Mr Adams wrote on Twitter. "NYC will be the cryptocurrency industry's epicenter, as well as other rapidly growing, innovative industries! Just hold on!"
The new mayor of New York City also wishes to emulate the success of Miami Mayor Carlos Suarez, who was instrumental in the creation of MiamiCoin, a cryptocurrency run by a non-profit organisaion called CityCoins. Mr Adams told Bloomberg radio that he hopes to replicate his experience in New York. Mr Adams, who ran on a pro-business platform, may face opposition to New York becoming a cryptocurrency hub.
As New York Attorney General Letitia James, who is running for governor of New York, has recently launched a crackdown on unregistered cryptocurrency companies, Mr Adams will face no shortage of opposition to his plans.
New York is only a microcosm of global regulators' issues as cryptocurrency grows in popularity.
Closing out this week's edition of Overbit Insights, we take a look at some potential legislation coming out of the United States.
After much delay, The United States House of Representatives passed a bipartisan infrastructure plan on Friday, 5 November. The kicker, for those who may remember: in it still stands a quite contentious crypto tax-reporting provision, one that could potentially open the door for an exponential increase in governmental surveillance and taxation of cryptocurrency.
Late Friday night, the House managed to pass the bill with at least 218 votes in favour, completing a key target for the Biden administration despite the debate over whether a companion Democrat-led package would also move through.
The Senate first passed the bill in August when MPs rejected any attempts to modify the crypto clause. This means that the bill is now headed to the desk of US President Joe Biden for his signature, with very few, if any, people expecting him to veto the package.
Pushback to the clause stalled the bill's passage in the Senate, allowing the infrastructure industry the opportunity to propose an amendment to change the text. Despite an 11th-hour effort to gain a modification, the Senate ultimately approved the bill without any revisions.
As we advance, the Treasury Department now explains how it intends to interpret the bill and issue recommendations outlining how corporations and other organisations must comply.
Thanks as always for reading Overbit Insights! Take care until next time.