The US House of Representatives has passed a bipartisan $1.2 trillion infrastructure bill that, if signed by President Joe Biden, would force new crypto tax reporting regulations for the entire population.
The infrastructure bill was first proposed by the Biden administration and is primarily intended to improve the national transportation network and internet coverage. However, the law imposes strict reporting requirements on the crypto community, and requires all transactions of digital assets over $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, and a group of six senators — Pat Toomey, Cynthia Loomis, Rob Portman and Mark Warner — met with a compromise amendment proposal. Kirsten Senema and Ron Weeden. According to Tommy:
“This law imposes very incomplete and in some cases dysfunctional tax reporting requirements for cryptocurrencies that jeopardize future technological innovation.”
Despite the lack of clarity in the literal presentation of the bill, the infrastructure bill aims to treat software developers, transaction validators and crypto community node operators in the same way as traditional enterprise intermediaries.
The House of Representatives passed President Biden’s controversial infrastructure bill after winning by 228-206 votes. In addition, the cryptocurrency environment has raised concerns about the vague description of the word “intermediary,” which could lead to unrealistic demands on tax reporting for sub-communities such as miners.
As a result, failure to disclose information about income related to cryptocurrencies will be considered a tax offense and a criminal offense.
On the topic: 8-word cryptocurrency change for the infrastructure bill, an “insult to the rule of law”
Legal experts have recommended changes to the infrastructure bill, making it a criminal offense not to report transactions using digital assets.
Abraham Sutherland, a professor at the University of Virginia College, expressed his concern about the US government’s decision to restrict the use of cryptocurrencies as intermediaries:
“This is bad for all digital asset users, but especially bad for decentralized finance. The law does not outlaw DeFi. Instead, it imposes reporting requirements that make compliance impossible, given the way DeFi works.”