House passes a 1 tonne dollar infrastructure bill with crypto tax for Biden approval


The United States House of Representatives passed the $ 1.2 trillion Infrastructure Bill that, if signed by President Joe Biden, would enforce new provisions regarding crypto tax reporting for all citizens.

The Infrastructure Act was first proposed by the Biden government to primarily improve the national transportation network and internet coverage. However, the bill put strict reporting requirements on the crypto community, requiring all transactions in digital assets worth more than $ 10,000 to be reported to the IRS.

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As Cointelegraph reported, the bill was first passed by the Senate on August 10th with 69-30 votes, by a group of six Senators – Pat Toomey, Cynthia Lummis, Rob Portman, Mark Warner. was accepted with a compromise proposal, Kyrsten Sinema and Ron Wyden. According to Toomey:

“This legislation prescribes a severely flawed and in some cases impractical mandate for tax reporting for cryptocurrencies that threatens future technological innovations.”

Despite the ambiguity in the wording of the draft law, the infrastructure draft is intended to treat software developers, transaction validators and node operators in the crypto community in a similar way to brokers in traditional institutions.

The House of Representatives presented President Biden with the controversial infrastructure bill after winning 228 votes to 206. In addition, the crypto community expressed concern about the vague description of the word “broker,” which, as a result, could impose unrealistic tax reporting requirements on sub-communities such as miners.

As a result, the inability to disclose crypto-related revenue is treated as a tax violation and a crime.

Related: 8-word crypto change in the Infrastructure Act an “affront to the rule of law”

Legal experts recommended amendments to the Infrastructure Act that treat failure to report digital asset transactions as a criminal offense.

Abraham Sutherland, a lecturer at the University of Virginia School, cited concerns about the U.S. government’s decision to broker crypto sub-communities in blanket terms:

“It’s bad for all users of digital assets, but especially bad for decentralized financing. The law wouldn’t directly ban DeFi. Instead, reporting obligations are imposed which, due to the way DeFi works, would make compliance impossible. “