House passes $1T infrastructure bill with crypto tax for Biden’s approval

The U.S. House of Representatives passed the $ 1.2 trillion bipartisan infrastructure bill, which if signed by President Joe Biden, would enforce new provisions regarding crypto-tax reporting for all citizens. .

The infrastructure bill was first proposed by the Biden administration with the aim of primarily improving the national transportation network and Internet coverage. However the Bill called for stringent reporting requirements for the crypto community, requiring digital asset transactions worth more than $ 10,000 to be reported to the IRS.

As Cointelegraph reported, the bill was first approved by the Senate on August 10 with a vote of 69-30, which was met with a compromise amendment proposal by a group of six senators - Pat Toomey, Cynthia Lummis, Rob Portman, Mark Warner, Kyrsten Sinema, and Ron Wyden. According to Toomey:

"This legislation imposes a very flawed, and in some cases unworkable, cryptocurrency tax reporting mandate that threatens future technological innovation."

Despite the lack of clarity in the text of the bill, the infrastructure bill is intended to treat software developers, transaction validators, and node operators in the crypto community similarly to brokers. traditional institutions.

The House of Representatives passed the controversial infrastructure bill to President Biden after earning a 228-206 vote victory. Furthermore, the crypto community was concerned about the vague description of the word 'broker' which consequently may impose unrealistic tax reporting requirements for sub-communities such as miners.

This bill is unconstitutional and inherently un-American

private citizens have the right to financial privacy and financial freedom

absolutely embarrassing to see this https://t.co/O9FkVC2CF4

- Meltem Demir ◎ rs (@Melt_Dem) November 4, 2021

As a repercussion, the inability to disclose cryptocurrency-related earnings will be treated as a tax violation and a felony.

Related: The 8-word crypto amendment in the infrastructure bill is an 'affront to the rule of law'

Legal experts recommended amendments to the infrastructure bill that considers failure to report digital asset transactions to be a crime.

Abraham Sutherland, a professor at the University of Virginia School, cited concerns about the US government's decision to exclude general-term crypto sub-communities as intermediaries:

“It's bad for all users of digital assets, but it's especially bad for decentralized finance. The statute would not ban DeFi entirely. Instead, it imposes reporting requirements that, given the way DeFi works, would make it impossible to meet. "