FTX CEO On Why Crypto May Be Trading Higher Amid Recent Regulation Developments

Bitcoin BTC/USD reached a new three-month high Monday amid further developments for a cryptocurrency regulation bill.

The bill would require U.S. crypto exchanges to send 1099 forms to the IRS reporting trades on behalf of U.S. customers, FTX founder and CEO Sam Bankman-Fried said Monday on CNBC's "Squawk On The Street."

Regulation Implications: The bill aims to address the underreporting of taxation, which Bankman-Fried said is "totally reasonable" and "going to happen no matter what."

The original language of the bill was vague and applied to anyone who was doing anything in terms of facilitating blockchain transfers, he said, adding that it could apply to crypto exchanges, but also to a maker of crypto wallet software or Bitcoin miners.

The new amendments to the bill aim to more clearly define which entities the regulations would apply to, Bankman-Fried told CNBC. 

If he were writing the bill, Bankman-Fried said he would make it explicit that crypto exchanges have to report 1099 forms to the IRS and then he would say "this bill isn't meant to cast judgment either way on sort of more complicated matters."

Why Crypto May Be Moving: Crypto may be rising amid regulation developments because "there has been a surprisingly large pro-crypto stance taken," he said. 

Many U.S. Senators who had not taken a stance on crypto publicly before, are coming out as pro-crypto, he added. 

Crypto markets are probably reacting to the fact that "crypto is going to get really serious consideration and have some allies on Capitol Hill. I don't think that was obvious before."

Related Link: Bitcoin Breaks Bear's Hopes, Busts Through Resistance: What's Next?

Price Action: Bitcoin is up 58.76% year-to-date.

At last check Monday, Bitcoin was up 5.06% at $45,978.20.

Photo by PIRO4D from Pixabay.